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A computable general equilibrium analysis of export taxes in the Australian wool industry

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  • Waschik, Robert
  • Fraser, Iain

Abstract

We solve for Australia’s optimal export tax on wool using a computable general equilibrium model - an aggregated version of the Monash Model. A key aspect of the analysis is the way in which we model short-run and long-run compara- tive statics. As opposed to varying the Armington elasticity which measures the degree of substitutability between domestic and imported goods, we contrast the unrestricted movement of primary factors of production with a specific-factors representation. We find that while results are virtually unchanged for the range of Armington elasticity values we employ in our sensitivity analysis, the specific- factors specification has a significant impact on model results.
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  • Waschik, Robert & Fraser, Iain, 2007. "A computable general equilibrium analysis of export taxes in the Australian wool industry," Economic Modelling, Elsevier, vol. 24(4), pages 712-736, July.
  • Handle: RePEc:eee:ecmode:v:24:y:2007:i:4:p:712-736
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    Cited by:

    1. Fraser, Iain & Waschik, Robert, 2013. "The Double Dividend hypothesis in a CGE model: Specific factors and the carbon base," Energy Economics, Elsevier, vol. 39(C), pages 283-295.
    2. Amir, Hidayat, 2013. "Economic Impact Analysis of the 2012 Indonesia Mineral-Export Tax Policy: A CGE Approach," MPRA Paper 62669, University Library of Munich, Germany.
    3. Olga Solleder, 2013. "Panel Export Taxes (PET) Dataset: New Data on Export Tax Rates," IHEID Working Papers 07-2013, Economics Section, The Graduate Institute of International Studies.
    4. Mahadevan, Renuka & Nugroho, Anda & Amir, Hidayat, 2017. "Do inward looking trade policies affect poverty and income inequality? Evidence from Indonesia's recent wave of rising protectionism," Economic Modelling, Elsevier, vol. 62(C), pages 23-34.

    More about this item

    JEL classification:

    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade

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