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Evidence-based Trade Policy Decision Making in Australia and the Development of Computable General Equilibrium Modelling

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Author Info
Peter B. Dixon

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Abstract

This paper explains why evidence-based trade policy decision making is heavily reliant on results generated by CGE models and why the development and application of these modelling has been particularly active in Australia. The paper provides a short history of CGE modelling and describes the impetus to the field provided by two factors: (a) the failures of less theoretically formal approaches; and (b) the recognition of the ability of CGE modelling to handle policy-relevant detail. The paper argues that CGE modelling flourished in Australia because Australia had the right issue, the right institutions and the right model.

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File URL: http://www.monash.edu.au/policy/ftp/workpapr/g-163.pdf
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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-163.

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Date of creation: Oct 2006
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Handle: RePEc:cop:wpaper:g-163

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Related research
Keywords: Trade policy CGE modeling

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
F14 - International Economics - - Trade - - - Country and Industry Studies of Trade

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  1. Shoven, John B. & Whalley, John, 1972. "A general equilibrium calculation of the effects of differential taxation of income from capital in the U.S," Journal of Public Economics, Elsevier, vol. 1(3-4), pages 281-321, November. [Downloadable!] (restricted)
    Other versions:
  2. Mark Horridge, 2000. "ORANI-G: A General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-93, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
  3. Shoven, John B & Whalley, John, 1973. "General Equilibrium with Taxes: A Computational Procedure and an Existence Proof," Review of Economic Studies, Blackwell Publishing, vol. 40(4), pages 475-89, October. [Downloadable!] (restricted)
  4. Herbert E. Scarf, 1967. "On the Computation of Equilibrium Prices," Cowles Foundation Discussion Papers 232, Cowles Foundation, Yale University. [Downloadable!]
  5. Powell, Alan A. & Snape, Richard H., 1993. "The contribution of applied general equilibrium analysis to policy reform in Australia," Journal of Policy Modeling, Elsevier, vol. 15(4), pages 393-414, August. [Downloadable!] (restricted)
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  6. 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!]
  7. Herbert E. Scarf, 1967. "The Approximation of Fixed Points of a Continuous Mapping," Cowles Foundation Discussion Papers 216R, Cowles Foundation, Yale University. [Downloadable!]
  8. Bandara, Jayatilleke S, 1991. " Computable General Equilibrium Models for Development Policy Analysis in LDCs," Journal of Economic Surveys, Blackwell Publishing, vol. 5(1), pages 3-69.
  9. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September. [Downloadable!] (restricted)
  10. Meeraus, Alexander, 1983. "An algebraic approach to modeling," Journal of Economic Dynamics and Control, Elsevier, vol. 5(1), pages 81-108, February. [Downloadable!] (restricted)
  11. 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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  12. 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)
  13. Dixon, Peter B. & Parmenter, B.R., 1996. "Computable general equilibrium modelling for policy analysis and forecasting," Handbook of Computational Economics, in: H. M. Amman & D. A. Kendrick & J. Rust (ed.), Handbook of Computational Economics, edition 1, volume 1, chapter 1, pages 3-85 Elsevier. [Downloadable!] (restricted)
  14. Adams, Philip D., 2005. "Interpretation of results from CGE models such as GTAP," Journal of Policy Modeling, Elsevier, vol. 27(8), pages 941-959, November. [Downloadable!] (restricted)
  15. de Melo, Jaime & Tarr, David, 1990. "Welfare Costs of US Quotas in Textiles, Steel and Autos," CEPR Discussion Papers 401, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
    Other versions:
  16. Rattso, Jorn, 1982. "Different macroclosures of the original Johansen model and their impact on policy evaluation," Journal of Policy Modeling, Elsevier, vol. 4(1), pages 85-97, March. [Downloadable!] (restricted)
  17. Hans M. Amman & David A. Kendrick, . "Computational Economics," Online economics textbooks, SUNY-Oswego, Department of Economics, number comp1, September. [Downloadable!]
  18. Dixon, Peter B. & Parmenter, B. R. & Powell, Alan A., 1984. "The role of miniatures in computable general equilibrium modelling : Experience from ORANI," Economic Modelling, Elsevier, vol. 1(4), pages 421-428, October. [Downloadable!] (restricted)
  19. Robinson, Sherman, 1991. "Macroeconomics, financial variables, and computable general equilibrium models," World Development, Elsevier, vol. 19(11), pages 1509-1525, November. [Downloadable!] (restricted)
  20. Pereira, Alfredo M. & Shoven, John B., 1988. "Survey of dynamic computational general equilibrium models for tax policy evaluation," Journal of Policy Modeling, Elsevier, vol. 10(3), pages 401-436. [Downloadable!] (restricted)
  21. Shoven, John B. & Whalley, John, 1974. "On the computation of competitive equilibrium on International markets with tariffs," Journal of International Economics, Elsevier, vol. 4(4), pages 341-354, November. [Downloadable!] (restricted)
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