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A Computable General Equilibrium Analysis of Export Taxes in the Australian Wool Industry

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  • Fraser, Iain
  • Waschik, Robert

Abstract

We solve for Australia’s optimal export tax on wool using a computable general equilibrium model - an aggregated version of the Monash Model. A key aspect of the analysis is the way in which we model short-run and long-run compara- tive statics. As opposed to varying the Armington elasticity which measures the degree of substitutability between domestic and imported goods, we contrast the unrestricted movement of primary factors of production with a specific-factors representation. We find that while results are virtually unchanged for the range of Armington elasticity values we employ in our sensitivity analysis, the specific- factors specification has a significant impact on model results.

Suggested Citation

  • Fraser, Iain & Waschik, Robert, 2006. "A Computable General Equilibrium Analysis of Export Taxes in the Australian Wool Industry," 2006 Conference (50th), February 8-10, 2006, Sydney, Australia 139733, Australian Agricultural and Resource Economics Society.
    • Handle: RePEc:ags:aare06:139733
    DOI: 10.22004/ag.econ.139733
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    Cited by:

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    2. Mahadevan, Renuka & Nugroho, Anda & Amir, Hidayat, 2017. "Do inward looking trade policies affect poverty and income inequality? Evidence from Indonesia's recent wave of rising protectionism," Economic Modelling, Elsevier, vol. 62(C), pages 23-34.
    3. Zhe Chen & Zhongzhong Hu & Kai Li, 2021. "The spillover effect of trade policy along the value Chain: Evidence from China's rare earth‐related sectors," The World Economy, Wiley Blackwell, vol. 44(12), pages 3550-3582, December.
    4. Fraser, Iain & Waschik, Robert, 2013. "The Double Dividend hypothesis in a CGE model: Specific factors and the carbon base," Energy Economics, Elsevier, vol. 39(C), pages 283-295.
    5. Ying Lin & Henry W. Kinnucan, 2020. "The optimal export tax for a primary commodity in a vertical market," Agricultural Economics, International Association of Agricultural Economists, vol. 51(6), pages 909-922, November.

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    More about this item

    Keywords

    Financial Economics; Livestock Production/Industries;

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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