IDEAS home Printed from https://ideas.repec.org/a/oup/apecpp/v33y2011i4p623-638..html

Comparing the Economic Impact of an Export Shock in Two Modeling Frameworks

Author

Listed:
  • Andrew J. Cassey
  • David W. Holland
  • Abdul Razack

Abstract

Because of more restrictive assumptions on regional input-output (IO) models compared to computable general equilibrium (CGE) models, IO results are thought to be consistent with long-run equilibrium but otherwise overestimated. We compare IO and CGE models' response to a shock to Washington crop exports under various labor market and capital closures. Contrary to conventional wisdom, we find that the positive secondary impacts are larger in the CGE models than in the IO model. Also contrary to conventional wisdom, we find that the closest match between direct effects is when the CGE model has short run, rather than long run restrictions.

Suggested Citation

  • Andrew J. Cassey & David W. Holland & Abdul Razack, 2011. "Comparing the Economic Impact of an Export Shock in Two Modeling Frameworks," Applied Economic Perspectives and Policy, Agricultural and Applied Economics Association, vol. 33(4), pages 623-638.
    • Handle: RePEc:oup:apecpp:v:33:y:2011:i:4:p:623-638.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/aepp/ppr033
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Hussain, Anwar & Munn, Ian A. & Holland, David W. & Armstrong, James B. & Spurlock, Stan R., 2012. "Economic Impact of Wildlife-Associated Recreation Expenditures in the Southeast United States: A General Equilibrium Analysis," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 44(1), pages 63-82, February.
    2. Laurent Scaringella & Jean-Jacques Chanaron, 2016. "Grenoble–GIANT Territorial Innovation Models," Post-Print hal-01472878, HAL.
    3. Logar, Ivana & van den Bergh, Jeroen C.J.M., 2013. "The impact of peak oil on tourism in Spain: An input–output analysis of price, demand and economy-wide effects," Energy, Elsevier, vol. 54(C), pages 155-166.
    4. Dudensing, Rebekka & Guerrero, Bridget & Amosson, Steve, 2019. "Evaluating the Accuracy of Regional Economic Impact Estimates: Considering a 2013 Beef Plant Closure in Texas," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 49(01), May.
    5. repec:zna:indecs:v:13:y:2015:i:2:p:434-449 is not listed on IDEAS
    6. Cassey, Andrew J. & Galinato, Suzette P. & Taylor, Justin L., 2012. "Environmental Regulation and Regional Economy: Economic Impacts of the Elimination of Azinphos-methyl on the Apple Industry and Washington State," Journal of Food Distribution Research, Food Distribution Research Society, vol. 43(2), pages 1-22.
    7. Andrew J. Cassey, 2011. "State Foreign Export Patterns," Southern Economic Journal, John Wiley & Sons, vol. 78(2), pages 308-329, October.
    8. Xi He, 2020. "US agricultural exports and labor market adjustments," Agricultural Economics, International Association of Agricultural Economists, vol. 51(4), pages 609-621, July.
    9. Helena Miloloza, 2015. "Distance Factors and Croatian Export Obstacles in the EU15: CAGE Approach," Interdisciplinary Description of Complex Systems - scientific journal, Croatian Interdisciplinary Society Provider Homepage: http://indecs.eu, vol. 13(3), pages 434-449.
    10. Scaringella, Laurent & Chanaron, Jean-Jacques, 2016. "Grenoble–GIANT Territorial Innovation Models: Are investments in research infrastructures worthwhile?," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 92-101.
    11. Miloloža Helena, 2015. "Differences between Croatia and EU Candidate Countries: the CAGE Distance Framework," Business Systems Research, Sciendo, vol. 6(2), pages 52-62, September.
    12. Laurent Scaringella & Jean-Jacques Chanaron, 2016. "Grenoble–GIANT Territorial Innovation Models," Grenoble Ecole de Management (Post-Print) hal-01472878, HAL.
    13. Watson, Philip S. & Castelin, Kimberly & Salant, Priscilla & Wulfhorst, J.D., 2012. "Estimating the Impacts of a Reduction in the Foreign-born Labor Supply on a State Economy: A Nested CGE Analysis of the Idaho Economy," The Review of Regional Studies, Southern Regional Science Association, vol. 42(1), pages 51-74, Spring.

    More about this item

    JEL classification:

    • C67 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Input-Output Models
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R15 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Econometric and Input-Output Models; Other Methods

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:apecpp:v:33:y:2011:i:4:p:623-638.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://edirc.repec.org/data/aaeaaea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.