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Development of a large-scale single U.S. region CGE model using IMPLAN data: A Los Angeles County example with a productivity shock application

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  • James A. Giesecke

Abstract

This paper details the construction of a large-scale computable general equilibrium (CGE) model for a single U.S. region. The model contains detailed treatment of margins and taxes, features not typically given prominence in U.S. regional CGE models. The starting point for the core of the CGE model's data base is information from IMPLAN, producers of regional I/O data at the U.S. county and state levels. IMPLAN's I/O tables, however, are in producer prices with aggregated treatment of margins and taxes. The methods for reconfiguring the I/O data into basic price flows with direct allocation of imports and a disaggregated treatment of taxes and margins are described. The method is applied to construction of a Los Angeles County model. An illustrative simulation of a productivity improvement in the Los Angeles County economy is then discussed.

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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-187.

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Date of creation: Aug 2009
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Publication status: Published in Spatial Economic Analysis, 2011, Vol. 6(3), pp. 331-350.
Handle: RePEc:cop:wpaper:g-187

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Keywords: CGE; IMPLAN;

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  1. Kym Anderson & James Giesecke & Ernesto Valenzuela, 2010. "How Would Global Trade Liberalization Affect Rural and Regional Incomes in Australia?," Centre for International Economic Studies Working Papers 2010-02, University of Adelaide, Centre for International Economic Studies.
  2. Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September.
  3. 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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Cited by:
  1. Hussain, Anwar & Munn, Ian A. & Holland, David W. & Armstrong, James & Spurlock, Stanley R., 2012. "Economic Impact of Wildlife-Associated Recreation Expenditures in the Southeast United States: A General Equilibrium Analysis," Journal of Agricultural and Applied Economics, Southern Agricultural Economics Association, vol. 44(01), February.
  2. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier.
  3. J.A. Giesecke & W.J. Burns & A. Barrett & E. Bayrak & A. Rose & M. Suher, 2010. "Assessment of the Regional Economic Impacts of Catastrophic Events: CGE analysis of resource loss and behavioral effects of a RDD attack scenario," Centre of Policy Studies/IMPACT Centre Working Papers g-194, Victoria University, Centre of Policy Studies/IMPACT Centre.
  4. Michael Lahr & Maria Alvarez, 2013. "Tortoise and the Hare Revisited? A CGE Analysis of Gaming and State Tax Revenues:," ERSA conference papers ersa13p191, European Regional Science Association.

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