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Trade Policy in Australia and the Development of Computable General Equilibrium Modeling

Author

Listed:
  • B. Dixon, Peter

    (Monash University)

Abstract

This paper discusses the early establishment in Australia of CGE modeling as a major policy tool. As background, it provides a short history of CGE modeling and describes the impetus to the field from: (a) the failure of less theoretically formal approaches; and (b) the recognition that this type of modeling can handle policy-relevant detail. The paper then argues that the CGE approach flourished in Australia because Australia had the right issue, the right institutions and the right model. The final section looks to the future of CGE modeling and the challenge of demonstrating that it really works.

Suggested Citation

  • B. Dixon, Peter, 2008. "Trade Policy in Australia and the Development of Computable General Equilibrium Modeling," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 605-630.
    • Handle: RePEc:ris:integr:0447
    as

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    Citations

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    Cited by:

    1. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    2. 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.
    3. Dissanayake, Sumali & Mahadevan, Renuka & Asafu-Adjaye, John, 2019. "Is there a role for trade liberalization in mitigating the impacts of climate change on agriculture?," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 307-324.
    4. Devarajan, Shantayanan & Robinson, Sherman, 2013. "Contribution of Computable General Equilibrium Modeling to Policy Formulation in Developing Countries," 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 277-301, Elsevier.
    5. Peter B. Dixon & Maureen T. Rimmer, 2010. "Validating a Detailed, Dynamic CGE Model of the USA," The Economic Record, The Economic Society of Australia, vol. 86(s1), pages 22-34, September.
    6. Kym Anderson, 2023. "Repurposing agricultural support policies for shared prosperity in rural Fiji," Departmental Working Papers 2023-11, The Australian National University, Arndt-Corden Department of Economics.

    More about this item

    Keywords

    CGE modeling; Australian trade policy; tariffs;
    All these keywords.

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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