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A General Equilibrium Model of the World Wool Market

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Author Info
George Verikios () (Department of Economics, The University of Western Australia)

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Abstract

This paper presents the theoretical and numerical structure of WOOLGEM – a general equilibrium model of the world wool market which treats raw wool, wool textiles and wool garments as heterogeneous commodities. The model divides the world wool market into nine geographical regions and production in each region amongst eight major industrial sectors, seven of which represent different production stages for wool and one representing the nonwool economy. The wool industrial sectors cover the full spectrum of activities from the production of greasy wool to wool garments. We use WOOLGEM to quantify the effects on Australian wool producers’ welfare of industry levies used to fund research and development at different stages of the wool chain.

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File URL: http://www.biz.uwa.edu.au/home/research/discussionworking_papers/economics?f=147004
File Format: application/pdf
File Function: First version, 2006
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Publisher Info
Paper provided by The University of Western Australia, Department of Economics in its series Economics Discussion / Working Papers with number 06-01.

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Length: 38 pages
Date of creation: 2006
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Handle: RePEc:uwa:wpaper:06-01

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Related research
Keywords: raw wool; wool textiles; wool garments; computable general equilibrium; research benefits; multistage production;

Find related papers by JEL classification:
C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models
F11 - International Economics - - Trade - - - Neoclassical Models of Trade
L79 - Industrial Organization - - Industry Studies: Primary Products and Construction - - - Other
O39 - Economic Development, Technological Change, and Growth - - Technological Change - - - Other
Q16 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - R&D; Agricultural Technology; Agricultural Extension Services

References listed on IDEAS
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  1. 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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