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Analyzing Economic Structural Change in a General Equilibrium Framework: The case of Switzerland from 1990 to 2001

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  • Laurent Cretegny

Abstract

Structural change is influenced by many factors, including technological changes and shifts in consumer preferences. These factors have an important impact on economic performance through the reallocation of resources from one economic activity to another. Applying SwissAGE, a general equilibrium model for Switzerland, this study focuses first on the estimation of changes in technology and consumer preferences. It shows then how economic history can be explained in terms of these driving factors. In particular, it shows that decrease in capital/labour ratio mitigates growth in real GDP and increase in export-oriented production heavily contributes to rapid growth in Swiss trade across the period 1990 to 2001..

Suggested Citation

  • Laurent Cretegny, 2005. "Analyzing Economic Structural Change in a General Equilibrium Framework: The case of Switzerland from 1990 to 2001," Centre of Policy Studies/IMPACT Centre Working Papers g-155, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-155
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    References listed on IDEAS

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    1. Peter B. Dixon & Maureen T. Rimmer, 2003. "The US economy from 1992 to 1998: historical and decomposition simulations with the USAGE model," Centre of Policy Studies/IMPACT Centre Working Papers g-143, Victoria University, Centre of Policy Studies/IMPACT Centre.
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    More about this item

    Keywords

    Technological change; Preference change; Dynamic CGE modelling; Swiss structural change; Trade growth;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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