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Linking a Microsimulation Model to a Dynamic CGE Model: Climate Change Mitigation Policies and Income Distribution in Australia

Author

Listed:
  • Hielke Buddelmeyer

    (Melbourne Institute of Applied Economic and Social Research)

  • Nicolas Hérault

    (Melbourne Institute of Applied Economic and Social Research)

  • Guyonne Kalb

    (Melbourne Institute of Applied Economic and Social Research)

  • Mark van Zijll de Jong

    (Melbourne Institute of Applied Economic and Social Research)

Abstract

This paper extends the top-down framework developed by Robilliard et al. (2001) to link a computable general equilibrium (CGE) model to a microsimulation (MS) model. The proposed approach allows for the linking of an MS model to a dynamic (rather than static) CGE model. The approach relies on altering the sample weights in order to reproduce long-term population projections and changes in employment as estimated by the CGE model. The approach is applied to assess the effects of climate-change mitigation policies in Australia from 2005 to 2030 at five-yearly intervals.

Suggested Citation

  • Hielke Buddelmeyer & Nicolas Hérault & Guyonne Kalb & Mark van Zijll de Jong, 2012. "Linking a Microsimulation Model to a Dynamic CGE Model: Climate Change Mitigation Policies and Income Distribution in Australia," International Journal of Microsimulation, International Microsimulation Association, vol. 5(2), pages 40-58.
    • Handle: RePEc:ijm:journl:v:5:y:2012:i:2:p:40-58
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    References listed on IDEAS

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