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Calibration of Computable General Equilibrium Models from Synthetic Benchmark Equilibrium Data Sets

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  • PHILIP D. ADAMS
  • PETER J. HIGGS

Abstract

The most common procedure for estimating the share parameters of a CGE model is to calibrate the model using a particular year‐of‐record benchmark equilibrium data set. In this paper we argue the case for calibration from synthetic benchmark equilibrium data sets which portray the economy in a notional typical year. The development of a synthetic agricultural sector in the benchmark equilibrium data set of the ORANI model of the Australian economy is described Finally a comparison is made of the results from ORANI of an across‐the‐board tariff cut simulation computed with both the synthetic benchmark equilibrium data set and a particular year‐of‐record data set.

Suggested Citation

  • Philip D. Adams & Peter J. Higgs, 1990. "Calibration of Computable General Equilibrium Models from Synthetic Benchmark Equilibrium Data Sets," The Economic Record, The Economic Society of Australia, vol. 66(2), pages 110-126, June.
    • Handle: RePEc:bla:ecorec:v:66:y:1990:i:2:p:110-126
    DOI: 10.1111/j.1475-4932.1990.tb01712.x
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    References listed on IDEAS

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    Cited by:

    1. Andre G Ross & Grant Allan & Gioele Figus & Peter McGregor & J Kim Swales & Karen Turner, 2018. "The economic impacts of UK trade-enhancing industrial policies and their spillover effects on the energy system," Working Papers 1810, University of Strathclyde Business School, Department of Economics.
    2. Fisher, Anthony & Fullerton, David & Hatch, Nile & Reinelt, Peter, 1994. "Alternatives for Managing Drought: A Comparative Cost Analysis," CUDARE Working Papers 198616, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. Figus, Gioele & McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2020. "Do sticky energy prices impact the time paths of rebound effects associated with energy efficiency actions?," Energy Economics, Elsevier, vol. 86(C).
    4. Joshua Elliott & Meredith Franklin & Ian Foster & Todd Munson & Margaret Loudermilk, 2012. "Propagation of Data Error and Parametric Sensitivity in Computable General Equilibrium Models," Computational Economics, Springer;Society for Computational Economics, vol. 39(3), pages 219-241, March.
    5. Gioele Figus & Patrizio Lecca & Peter McGregor & Karen Turner, 2017. "Energy efficiency as an instrument of regional development policy? Trading-off the benefits of an economic stimulus and energy rebound effects," Working Papers 1702, University of Strathclyde Business School, Department of Economics.
    6. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    7. Andrew G Ross & Grant Allan & Gioele Figus & Peter G McGregor & J Kim Swales & Karen Turner, 2018. "The economic impacts of UK fiscal policies and their spillover effects on the energy system," Working Papers 1820, University of Strathclyde Business School, Department of Economics.
    8. Burfisher, Mary E. & Robinson, Sherman & Theirfelder, Karen, 1997. "Migration, Prices, and Wages in a North American Free Trade Agreement," 1997 Occasional Paper Series No. 7 198199, International Association of Agricultural Economists.
    9. Adams, Philip D., 1987. "Agricultural Supply Response in ORANI," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 55(03), pages 1-17, December.
    10. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    11. Gioele Figus & Patrizio Lecca & Karen Turner & Peter McGregor, 2016. "Increased energy efficiency in Scottish households: trading-off economic benefits and energy rebound effects?," EcoMod2016 9454, EcoMod.
    12. Robinson, Sherman & Burfisher, Mary E. & Hinojosa-Ojeda, Raul & Thierfelder, Karen E., 1993. "Agricultural policies and migration in a U.S.-Mexico free trade area: A computable general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 673-701.
    13. Hertel, Thomas W., 1991. "Applied General Equilibrium Analysis of Agricultural Policies," Staff Papers 200396, Purdue University, Department of Agricultural Economics.
    14. Gioele Figus & Peter McGregor & J Kim Swales & Karen Turner, 2018. "The importance of energy price stickiness and real wage inflexibility for the time paths of rebound effects," Working Papers 1804, University of Strathclyde Business School, Department of Economics.
    15. Burfisher, Mary & Thierfelder, Karen & Hanson, Kenneth, 1992. "Data Base for a Computable General Equilibrium Model of the Agricultural Sectors of the United States and Mexico and Their Interactions," Staff Reports 278680, United States Department of Agriculture, Economic Research Service.
    16. Grant Allan & Christos Barkoumas & Andrew Ross & Ashank Sinha, 2020. "Success in sectoral export promotion and economic and environmental indicators: a multisectoral modelling analysis for the UK," Working Papers 2008, University of Strathclyde Business School, Department of Economics.

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