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Explaining regional economic performance: An historical application of a dynamic multi†regional CGE model**I gratefully acknowledge the helpful suggestions and comments made by Dr. John Madden, Professor Peter Dixon, and two anonymous referees on an earlier version of this paper

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  • Giesecke, James

Abstract

A multi†regional dynamic computable general equilibrium model of the Australian economy (federal†f) is used to identify the causes of the divergent growth performance of two Australian regional economies (Tasmania and the rest of Australia) over the period 1992–1993 to 1998–1999. These causes are traced to a large number of structural and policy changes in the two economies. Ultimately, no simple or mono†causal explanation for the divergent growth experience is found – the relatively slow growth of the Tasmanian economy is the net effect of a large number of countervailing influences. Nevertheless, from among these many influences, it is possible to distinguish those that had a sizeable impact from those that had a negligible impact.

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Handle: RePEc:eee:paresc:v:81:y:2002:i:2:p:247-278
DOI: 10.1111/j.1435-5597.2002.tb01232.x
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JEL classification:

  • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
  • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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