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The Policy Research Working Paper Series disseminates the findings of work in progress to encourage the exchange of ideas about development issues. An objective of the series is to get the findings out quickly, even if the presentations are less than fully polished. The papers carry the names of the authors and should be cited accordingly. The findings, interpretations, and conclusions expressed in this paper are entirely those of the authors. They do not necessarily represent the views of the International Bank for Reconstruction and Development/World Bank and its affiliated organizations, or those of the Executive Directors of the World Bank or the governments they represent.

This article presents a simple Monte Carlo (MC) procedure to improve sensitivity analysis in Computable general equilibrium (CGE) modelling. MC experiments provide the modeller with a population of randomly drawn exogenous parameters and corresponding endogenous outcomes. Standard econometrics can then shed light on the relationship between them and help to identify key parameters, particularly key elasticities.Monte Carlo, elasticities, CGE,

IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.