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

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Author Info
Peter B. Dixon
Maureen T. Rimmer

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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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Paper provided by Monash 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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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade
R1 - Urban, Rural, and Regional Economics - - General Regional Economics

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Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Blackwell Publishing, vol. 35(66), pages 94-113, June.
  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. [Downloadable!]
  3. Harrison, W Jill & Pearson, K R, 1996. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Computational Economics, Springer, vol. 9(2), pages 83-127, May.
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  4. Pearson, K. R., 1988. "Automating the computation of solutions of large economic models," Economic Modelling, Elsevier, vol. 5(4), pages 385-395, October. [Downloadable!] (restricted)
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  1. 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, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  2. Eduardo A. Haddad & Fernando S. Perobelli & Jaime Bonet & Geoffrey J. D. Hewings, . "Structural Interdependence among Colombian Departments," Borradores de Economia 517, Banco de la Republica de Colombia. [Downloadable!]
    Other versions:
  3. 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. [Downloadable!]
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