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State-level Dynamic CGE Modeling for Forecasting and Policy Analysis

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Author Info
Peter B. Dixon
Maureen T. Rimmer

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Abstract

In computable general equilibrium (CGE) modeling there are two broad approaches to generating regional results: bottoms-up and tops-down. We describe both, providing illustrative examples from our experience in Australia. We then describe USAGE, a 500-order dynamic CGE model of the US that we are developing in collaboration with the US International Trade Commission. Tops-down State results from USAGE will be available in a relatively short time. With a longer time horizon, it will be possible to create a bottoms-up version of USAGE. Tops-down applications will be 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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File URL: http://www.monash.edu.au/policy/ftp/workpapr/ip-82.pdf
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Publisher Info
Paper provided by Monash University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number ip-82.

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Date of creation: Aug 2003
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Handle: RePEc:cop:wpaper:ip-82

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Find related papers by JEL classification:
D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

References listed on IDEAS
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  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. Adams, Philip D & Parmenter, Brian R, 1995. "An Applied General Equilibrium Analysis of the Economic Effects of Tourism in a Quite Small, Quite Open Economy," Applied Economics, Taylor and Francis Journals, vol. 27(10), pages 985-94, October.
  4. Dixon, Peter B & Madden, John R & Peter, Matthew W, 1993. "The Effects of Reallocating General Revenue Assistance among the Australian States," The Economic Record, The Economic Society of Australia, vol. 69(207), pages 367-81, December.
  5. Litan, Robert & Rivlin, Alice, 2001. "Projecting the economic impact of the Internet," Journal of Financial Transformation, Capco Institute, vol. 2, pages 35-41.
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  1. Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 20(1). [Downloadable!]
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