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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

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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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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-187.

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Date of creation: Aug 2009
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Handle: RePEc:cop:wpaper:g-187

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Related research
Keywords: CGE; IMPLAN;

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Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
R13 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
R15 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

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  1. Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September. [Downloadable!] (restricted)
  2. 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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  3. Kym Anderson & James Giesecke & Ernesto Valenzuela, 2008. "How would global trade liberalization affect rural and regional incomes in Australia?," Centre of Policy Studies/IMPACT Centre Working Papers g-176, Monash University, Centre of Policy Studies/IMPACT Centre. [Downloadable!]
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This page was last updated on 2009-11-13.

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