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A Harris-style miniature version of ORANI

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Author Info

  • Peter Cory
  • Mark Horridge

Abstract

A small version of ORANI is constructed, incorporating economies of scale and imperfect competition. Economic mechanisms are borrowed from a model constructed by Richard Harris, and described in his 1984 book "Trade, Industrial Policy and Canadian Manufacturing". The miniature Harris-like model is used to determine whether Harris' conclusions might carry over to Australia, and to see which of his several assumptions are responsible for his more striking results. We find that import-parity pricing is responsible for most of the 'action', while Lerner pricing (based on perceived demand elasticities) yields results similar to the conventional CRTS model. Please note: The PDF download of this fairly old paper is an optical scan of indifferent, but legible, quality

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File URL: http://www.copsmodels.com/ftp/workpapr/op-54.pdf
File Function: Initial version, 1985-06
Download Restriction: no

File URL: http://www.copsmodels.com/elecpapr/op-54.htm
File Function: Local abstract: may link to additional material.
Download Restriction: no

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 op-54.

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Date of creation: Jun 1985
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Handle: RePEc:cop:wpaper:op-54

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Postal: PO Box 14428, Melbourne, Victoria, 8001
Phone: 03 9919 1877
Web page: http://www.copsmodels.com/about.htm
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Related research

Keywords: Economies of scale; imperfect competition; applied general equilibrium models;

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Cited by:
  1. Kaludura Abayasiri-Silva & Mark Horridge, 1996. "Economies of Scale and Imperfect Competition in an Applied General Equilibrium Model of the Australian Economy," Centre of Policy Studies/IMPACT Centre Working Papers op-84, Victoria University, Centre of Policy Studies/IMPACT Centre.
  2. J. David Richardson, 1990. "Empirical Research on Trade Liberalization With Imperfect Competition: A Survey," NBER Working Papers 2883, National Bureau of Economic Research, Inc.

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