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Disaggregation of results from a detailed general equilibrium model of the US to the State level

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  • Peter B. Dixon
  • Maureen T. Rimmer

Abstract

This paper describes the regional extension of USAGE-ITC, a 500-order dynamic CGE model of the US that we are developing in collaboration with the International Trade Commission. With the regional extension, USAGE-ITC can project the effects on employment and output by state of policy and other shocks to the economy. The paper describes the theory and data underlying the regional extension, and provides an illustrative application concerned with the effects of elimination of US restraints on imports. In CGE modeling there are two broad approaches to generating regional results: bottoms-up and tops-down. Our approach here is tops-down with emphasis on the estimation of inter-regional flows of goods and services. As explained in the paper, the tops-down approach is adequate for analysis of economy-wide shocks such as changes in Federal policies. Bottoms-up modeling will be required for analysis of shocks in which the essence is a change in relative costs across regions.

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Bibliographic Info

Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-145.

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Date of creation: Apr 2004
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Handle: RePEc:cop:wpaper:g-145

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References

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  1. K.R. Pearson, 1986. "Automating the Computation of Solutions of Large Economic Models," Centre of Policy Studies/IMPACT Centre Working Papers ip-27, Victoria University, Centre of Policy Studies/IMPACT Centre.
  2. Dixon, P.B. & Parmenter, B.R. & Sutton, J., 1978. "Spatial Disaggregation of Orani Results: A Preliminary Analysis of the Impact of Protection at the State Level," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 8(1), pages 35-86.
  3. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
  4. W. Jill Harrison & K.R. Pearson, 1994. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Centre of Policy Studies/IMPACT Centre Working Papers ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
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Citations

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Cited by:
  1. Butt, Muhammad Shoaib & Bandara, Jayatilleke S., 2008. "National and Regional Impacts of Increasing Non-Agricultural Market Access by Developing Countries – the Case of Pakistan," Economic Analysis and Policy (EAP), Queensland University of Technology (QUT), School of Economics and Finance, vol. 38(2), pages 277-311, September.
  2. Eduardo Haddad & Juan Manuel Samaniego & Alexandre Porsse & Santiago Ochoa & Luiz Gustavo Souza, 2011. "Interregional Interdependence among Ecuadorian Provinces: An Input-Output Analysis," ERSA conference papers ersa11p836, European Regional Science Association.
  3. Peter B. Dixon & Maureen T. Rimmer & Marinos E. Tsigas, 2004. "Macro, industry and state effects in the U.S. of removing major tariffs and quotas," Centre of Policy Studies/IMPACT Centre Working Papers g-146, Victoria University, Centre of Policy Studies/IMPACT Centre.
  4. Eduardo A. Haddad, 2012. "Progress on the Development of an Interregional Computable General Equilibrium Model for Lebanon: The Input-Output System," Working Papers, Department of Economics 2012_12, University of São Paulo (FEA-USP).
  5. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier.
  6. Eduardo A. Haddad & Vasco Silva, Alexandre A. Porsse, Tomaz Dentinho, 2012. "Multipliers in an Island Economy: The Case of the Azores," Working Papers, Department of Economics 2012_24, University of São Paulo (FEA-USP).
  7. Hasegawa, Marcos & Guilhoto, Joaquim José Martins, 2006. "Investimento e produtividade dos fatores primários: uma análise de equilíbrio geral aplicado
    [Investment and productivity of primary factors: a general applied general equilibrium analysis]
    ," MPRA Paper 54555, University Library of Munich, Germany.
  8. Eduardo A. Haddad & Fernando S. Perobelli & Jaime Bonet & Geoffrey J. D. Hewings, 2008. "Structural Interdependence among Colombian Departments," BORRADORES DE ECONOMIA 004722, BANCO DE LA REPÚBLICA.
  9. Haddad, Eduardo A. & Garcia Samaniego, Juan Manuel & Porsse, Alexandre A. & Ochoa Jimenez, Diego Alejandro & Ochoa Moreno, Wilman Santiago & Souza, Luiz Gustavo Antonio, 2011. "Interregional input-ouptut system for Ecuador, 2007: methodology and results," MPRA Paper 32927, University Library of Munich, Germany.
  10. Faria, Weslem Rodrigues & Haddad, Eduardo A., 2011. "Estimação das Elasticidades de Substituição do Comércio Regional do Brasil
    [Estimation of Regional Trade Substitution Elasticities for Brazil]
    ," MPRA Paper 32923, University Library of Munich, Germany.

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