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Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis

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  • Mark Partridge
  • Dan Rickman

Abstract

Partridge M. D. and Rickman D. S. Computable general equilibrium (CGE) modelling for regional economic development analysis, Regional Studies. Despite their long-standing use in economic policy analysis generally, and increasing popularity in regional policy analysis, computable general equilibrium (CGE) models have yet to become the dominant approach for analysis of regional economic development policies. This review discusses the likely reasons for the limited use of CGE models for regional economic development analysis, particularly for small regions. It also proposes methodological improvements that would likely lead to the wider use of CGE models in economic development practice. A central theme is the need for a model that can be empirically demonstrated to capture the relevant policy components and the structure of the region of study. [image omitted] Partridge M. D. et Rickman D. S. La modelisation CGE dans l'analyse du developpement economique regional, Regional Studies. En depit de leur emploi generalise de longue date dans l'analyse de la politique economique, et malgre leur popularite croissante dans l'analyse de la politique regionale, la modelisation CGE doit encore devenir la facon dominante dans les politiques de developpement economique regional. Cet article cherche a presenter les raisons qui risquent d'expliquer l'emploi limite des modeles CGE dans l'analyse du developpement economique regional, en particulier pour ce qui est des petites regions. L'article cherche aussi a proposer des ameliorations methodologiques qui entraineraient l'emploi plus generalise des modeles CGE dans le developpement economique en pratique. Un aspect central est le besoin d'un modele susceptible de capter de maniere empirique les elements cles d'une politique et la structure de la region a etudier. Regional Equilibre general sur ordinateur (CGE) Developpement economique regional Partridge M. D. und Rickman D. S. CGE-Modelle fur Analysen der regionalen Wirtschaftsentwicklung, Regional Studies. CGE-Modelle kommen in Analysen der Wirtschaftspolitik im Allgemeinen seit langem zum Einsatz und sind zunehmend auch bei Analysen der Regionalpolitik beliebt. Doch bei der Analyse regionalwirtschaftlicher Entwicklungspolitiken sind sie noch nicht zum vorherrschenden Ansatz geworden. In diesem Beitrag werden die moglichen Grunde erortert, warum CGE-Modelle fur Analysen der regionalen Wirtschaftsentwicklung insbesondere im Fall von kleinen Regionen nur begrenzt Anwendung finden. Ausserdem werden methodologische Verbesserungen vorgeschlagen, die einen breiteren Einsatz von CGE-Modellen in der Praxis der Wirtschaftsentwicklung ermoglichen konnten. Ein zentrales Thema ist die Notwendigkeit eines Modells, von dem sich empirisch nachweisen lasst, dass es die relevanten politischen Komponenten und die Struktur der untersuchten Region erfasst. Regionale Berechenbares allgemeines Gleichgewicht Regionale Wirtschaftsentwicklung Partridge M. D. y Rickman D. S. Modelo CGE para el analisis del desarrollo economico regional, Regional Studies. Pese a la larga utilizacion general en los analisis politicos sobre economia y la creciente popularidad en los analisis politicos regionales, los modelos CGE todavia no han llegado a ser enfoques dominantes para el analisis de las politicas de desarrollo economico a nivel regional. En este ensayo exponemos las posibles razones para el uso limitado de modelos CGE para los analisis de desarrollo economico regional, especialmente para pequenas regiones. Tambien proponemos mejoras metodologicas que probablemente llevarian a un uso mas amplio de los modelos CGE en la practica del desarrollo economico. Un tema central es la necesidad de un modelo que demuestre empiricamente que capta los componentes relevantes de la politica y la estructura de la region que se estudia. Regional Equilibrio computable general Desarrollo economico regional

Suggested Citation

  • Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
  • Handle: RePEc:taf:regstd:v:44:y:2010:i:10:p:1311-1328
    DOI: 10.1080/00343400701654236
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    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • C00 - Mathematical and Quantitative Methods - - General - - - General

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