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ORANI-G: A General Equilibrium Model of the Australian Economy

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  • Mark Horridge

Abstract

ORANI is an applied general equilibrium (AGE) model of the Australian economy which is widely used by academics and by economists in the government and private sectors. We describe a generic version of the model, ORANI-G, designed both for expository purposes and as a convenient starting-point for those wishing to construct their own AGE model. ORANI-G forms the basis of an annual modelling course, and has been adapted to build models of South Africa, Pakistan, Sri Lanka, Fiji, South Korea, Denmark, Vietnam, Thailand, Indonesia, Philippines and both Chinas. Our description of the model's equations and database is closely integrated with an explanation of how the model is solved. Indeed, the model equations are presented in the syntax, resembling ordinary algebraic notation, used by the GEMPACK modelling system to specify the model. The document includes: an outline of the structure of the model and of the appropriate interpretations of the results of comparative-static and forecasting simulations; a description of the solution procedure; a brief description of the data, emphasising the general features of the data structure required for such a model; a complete description of the theoretical specification of the model framed around the TABLO Input file which implements the model in GEMPACK.

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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-93.

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Date of creation: Oct 2000
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Handle: RePEc:cop:wpaper:op-93

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  1. W. Jill Harrison & K.R. Pearson, 1994. "Computing Solutions for Large General Equilibrium Models Using GEMPACK," Centre of Policy Studies/IMPACT Centre Working Papers, Victoria University, Centre of Policy Studies/IMPACT Centre ip-64, Victoria University, Centre of Policy Studies/IMPACT Centre.
  2. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521266550.
  3. B. R. Parmenter & G. A. Meagher, 1985. "Policy Analysis Using a Computable General Equilibrium Model: A Review of Experience at the IMPACT Project," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(1), pages 3-15.
  4. Paul S. Armington, 1970. "Adjustment of Trade Balances: Some Experiments with a Model of Trade among Many Countries (Ajustement de la balance commerciale: quelques expériences avec un modèle d'échanges internationaux)," IMF Staff Papers, Palgrave Macmillan, Palgrave Macmillan, vol. 17(3), pages 488-526, November.
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