The thesis analyzes theoretical, empirical and technical principles on constructing computable general equilibrium models and commented on the scope of application of this approach to modeling economic processes. Considering the fact that each country has specific features of economic development, the study on the establishment of a general equilibrium model of our country is relevant. In the market economy, one of the main goals in creating a general equilibrium model is to study the effect of changes in fiscal policy of the economy.

It is necessary to create an internal economic environment that will increase competitiveness in the country and stimulate business, which will eventually lead to innovation. Azerbaijan economy should be high-tech, innovative, scientific, and generally modern. Surveys show that the transition of the economy of Azerbaijan to a non-oil export economic system can be achieved by expanding and properly distributing investment in the development of production throughout the country.

The paper analyzes the establishment of the basic structure of the economic model of the Republic of Azerbaijan as well. In the course of the study, an aggregated scheme of the social accounts matrix was created, which is the source of many parameters of the general equilibrium model used to build the behavior model of Azerbaijan economy. Solving of the model data on the “home” sector were collected and tested (model component).

Keywords: General equilibrium model, market economy, social accounts matrix, matrix Z, setting methods, economy of Azerbaijan, household sector.