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Linking CGE and specialist models: Deriving the implications of highway policy using USAGE-Hwy

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  • Dixon, Peter B.
  • Rimmer, Maureen T.
  • Waschik, Robert

Abstract

Scientists/engineers create specialist partial-equilibrium models of energy, environment and transportation. We show how technical information from such models can be transferred into a CGE model. We illustrate the approach by describing the creation and application of USAGE-Hwy which combines USAGE, a CGE model of the U.S., with HERS, a specialist highway model. USAGE-Hwy translates micro information from HERS on the effects of highway expenditure programs into implications for GDP, employment, and the trade-off between current and future living standards. Combination models such as USAGE-Hwy bring scientific/engineering information into the economic domain, facilitating its use in policy discussions.

Suggested Citation

  • Dixon, Peter B. & Rimmer, Maureen T. & Waschik, Robert, 2017. "Linking CGE and specialist models: Deriving the implications of highway policy using USAGE-Hwy," Economic Modelling, Elsevier, vol. 66(C), pages 1-18.
    • Handle: RePEc:eee:ecmode:v:66:y:2017:i:c:p:1-18
    DOI: 10.1016/j.econmod.2017.04.022
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    References listed on IDEAS

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    1. Dixon, Peter B. & Koopman, Robert B. & Rimmer, Maureen T., 2013. "The MONASH Style of Computable General Equilibrium Modeling: A Framework for Practical Policy Analysis," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 23-103, Elsevier.
    2. Dixon, Peter B. & Rimmer, Maureen T., 2016. "Johansen's legacy to CGE modelling: Originator and guiding light for 50 years," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 421-435.
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    Cited by:

    1. Korrakot Phomsoda & Nattapong Puttanapong & Mongkut Piantanakulchai, 2021. "Assessing Economic Impacts of Thailand’s Fiscal Reallocation between Biofuel Subsidy and Transportation Investment: Application of Recursive Dynamic General Equilibrium Model," Energies, MDPI, vol. 14(14), pages 1-32, July.
    2. Lei Wen & Anqi Wang, 2023. "System dynamics model of Beijing urban public transport carbon emissions based on carbon neutrality target," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(11), pages 12681-12706, November.
    3. Robson, Edward N. & Wijayaratna, Kasun P. & Dixit, Vinayak V., 2018. "A review of computable general equilibrium models for transport and their applications in appraisal," Transportation Research Part A: Policy and Practice, Elsevier, vol. 116(C), pages 31-53.
    4. Nassios, Jason & Giesecke, James A. & Dixon, Peter B. & Rimmer, Maureen T., 2020. "What impact do differences in financial structure have on the macro effects of bank capital requirements in the United States and Australia?," Economic Modelling, Elsevier, vol. 87(C), pages 429-446.
    5. Catherine Taylor & Robert Waschik, 2022. "Evaluating the impact of automation in long-haul trucking using USAGE-Hwy," Centre of Policy Studies/IMPACT Centre Working Papers g-326, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Nassios, J. & Waschik, Robert & Dixon, P.B. & Rimmer, M., 2020. "Evaluating the impact of automation in long-haul trucking in the United States using USAGE-Hwy," Conference papers 333205, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Peter B. Dixon & Maureen T. Rimmer, 2020. "Developing a DSGE Consumption Function for a CGE Model," Centre of Policy Studies/IMPACT Centre Working Papers g-296, Victoria University, Centre of Policy Studies/IMPACT Centre.

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    More about this item

    Keywords

    Linked modelling; CGE modelling; Highway modelling; Highway spending policy;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • L92 - Industrial Organization - - Industry Studies: Transportation and Utilities - - - Railroads and Other Surface Transportation

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