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Trade Policy in Australia and the Development of Computable General Equilibrium Modeling

Author

Listed:
  • B. Dixon, Peter

    () (Monash University)

Abstract

This paper discusses the early establishment in Australia of CGE modeling as a major policy tool. As background, it provides a short history of CGE modeling and describes the impetus to the field from: (a) the failure of less theoretically formal approaches; and (b) the recognition that this type of modeling can handle policy-relevant detail. The paper then argues that the CGE approach flourished in Australia because Australia had the right issue, the right institutions and the right model. The final section looks to the future of CGE modeling and the challenge of demonstrating that it really works.

Suggested Citation

  • B. Dixon, Peter, 2008. "Trade Policy in Australia and the Development of Computable General Equilibrium Modeling," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 605-630.
  • Handle: RePEc:ris:integr:0447
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    Cited by:

    1. Dixon, Peter B. & Koopman, Robert B. & Rimmer, Maureen T., 2013. "The MONASH Style of Computable General Equilibrium Modeling: A Framework for Practical Policy Analysis," Handbook of Computable General Equilibrium Modeling, Elsevier.
    2. Devarajan, Shantayanan & Robinson, Sherman, 2013. "Contribution of Computable General Equilibrium Modeling to Policy Formulation in Developing Countries," Handbook of Computable General Equilibrium Modeling, Elsevier.

    More about this item

    Keywords

    CGE modeling; Australian trade policy; tariffs;

    JEL classification:

    • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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