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The Economic Consequences of Productivity Changes: A Computable General Equilibrium (CGE) Analysis


  • Harvey Cutler
  • Stephen Davies


Cutler H. and Davies S. The economic consequences of productivity changes: a computable general equilibrium (CGE) analysis, Regional Studies. This paper uses a data-intensive CGE model to examine sector-specific impacts of increases in total factor productivity and labour and capital productivity. It focuses on the importance of a sector's output in household consumption and firms' intermediate input demand, the importance of labour and capital in value added and the impact on the city's consumer price index (CPI) as factors influencing the transmission mechanism. The general equilibrium effects result in unambiguous increases in household migration for total factor productivity and capital productivity but not for the labour case. This analysis emphasizes the impact on household income and tax revenue per new household. [image omitted] Cutler H. et Davies S. Les consequences economiques des changements de productivite: une analyse EGC, Regional Studies. Cet article utilise un modele d'Equilibre General Calculable (EGC) faisant appel a de tres nombreuses donnees pour examiner les incidences sectorielles de l'augmentation des facteurs globaux de productivite, ainsi que de la productivite de la main d'oeuvre et du capital. Nous nous concentrons sur l'importance de la production d'un secteur pour la consommation des menages et pour la demande des entreprises en biens de consommation intermediaires, sur l'importance de la main d'oeuvre et du capital dans la valeur ajoutee, et sur l'impact sur l'indice du cout de la vie de la ville en tant que facteurs influencant le mecanisme de transmission. Les effets de l'equilibre general entrainent clairement l'augmentation des migrations des menages dans le cas des facteurs globaux de productivite et dans celui de la productivite du capital, mais pas dans le cas de la main d'oeuvre. Notre analyse souligne l'impact sur les revenus des menages et sur les recettes fiscales par nouveau foyer. Analyse EGC Changements sectoriels de productivite Cutler H. und Davies S. Die wirtschaftlichen Auswirkungen von Produktivitatsanderungen: eine CGE-Analyse, Regional Studies. In diesem Beitrag untersuchen wir mit Hilfe eines datenintensiven CGE-Modells die sektorspezifischen Auswirkungen einer Erhohung der Gesamtfaktorproduktivitat sowie der Arbeits- und Kapitalproduktivitat. Wir konzentrieren uns auf die Bedeutung der Leistung eines Sektors im Bereich des Haushaltskonsums sowie des mittleren Zufuhrbedarfs der Firmen, auf die Bedeutung von Arbeit und Kapital bei der Wertschopfung sowie auf die Auswirkung des Verbraucherpreisindexes der Stadt als Faktoren, die den Ubertragungsmechanismus beeinflussen. Die allgemeinen Gleichgewichtseffekte fuhren zu eindeutigen Steigerungen in der Haushaltsmigration hinsichtlich der Gesamtfaktor- und Kapitalproduktivitat, nicht jedoch hinsichtlich der Arbeitsproduktivitat. In unserer Analyse werden die Auswirkungen auf das Haushaltseinkommen und die Steuereinnahmen pro neuem Haushalt deutlich. CGE-Analyse Sektorspezifische Produktivitatsanderungen Cutler H. y Davies S. Las consecuencias economicas de los cambios de productividad: un analisis CGE, Regional Studies. En este ensayo utilizamos un modelo CGE concentrado de datos para examinar las repercusiones especificas en el sector de los aumentos de la productividad total de los factores y la productividad de la mano de obra y el capital. Nos centramos en la importancia del rendimiento del sector en el consumo en los hogares y la demanda de insumo intermedio de las empresas, la importancia de la mano de obra y el capital en el valor anadido y el impacto en el Indice de Precios de Consumo (IPC) de las ciudades como factores que influyen en el mecanismo de transmision. Los efectos del equilibrio general causan un aumento inequivoco en la emigracion domestica para la productividad total de los factores y la productividad de capital pero no para el caso de la productividad laboral. En nuestro analisis recalcamos las repercusiones en los ingresos domesticos e impuestos sobre la renta para los nuevos hogares. Analisis CGE Cambios en la productividad del sector

Suggested Citation

  • Harvey Cutler & Stephen Davies, 2010. "The Economic Consequences of Productivity Changes: A Computable General Equilibrium (CGE) Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1415-1426.
  • Handle: RePEc:taf:regstd:v:44:y:2010:i:10:p:1415-1426
    DOI: 10.1080/00343400701654210

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    Cited by:

    1. Perry Burnett, 2016. "Overpopulation, Optimal City Size And The Efficiency Of Urban Sprawl," Review of Urban & Regional Development Studies, Wiley Blackwell, vol. 28(3), pages 143-161, November.
    2. Miguel, Francisco Javier de & Llop Llop, Maria & Manresa, Antonio, 1954-, 2011. "Simulating the Impact of Sectorial Productivity Gains on Two Regional Economies: Key Sectors from a Supply Side Perspective," Working Papers 2072/169681, Universitat Rovira i Virgili, Department of Economics.
    3. Francisco Miguel & Maria Llop & Antonio Manresa, 2014. "Sectoral productivity gains in two regional economies: key sectors from a supply-side perspective," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 53(3), pages 731-744, November.
    4. repec:elg:eechap:14395_2 is not listed on IDEAS


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