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Demand Analysis for CGE Modelling and EDM I: Main Results

In: Short-cut Demand Elasticities and Other Convenient Approaches to Consumer Demand

Author

Listed:
  • Kenneth W. Clements

    (University of Western Australia)

  • Haiyan Liu

    (University of Western Australia)

  • Marc Jim M. Mariano

    (Commonwealth Scientific and Industrial Research Organisation)

  • Eliyathamby A. Selvanathan

    (Griffith University)

  • Saroja Selvanathan

    (Griffith University)

  • George Verikios

    (Griffith University)

Abstract

Computable general equilibrium (CGE) models analyse the detailed workings of the whole economy and are widely used in policy research. Typically, a large number of elasticities are needed for the implementation of CGE models, for household demands, for input demands of firms, and for the split between foreign and domestically produced goods. This chapter discusses these matters, emphasising procedures to estimate the demand elasticities and their importance in influencing CGE simulation results. As equilibrium displacement models (EDM) of a single market, or a set of closely related ones, can be interpreted as a special case of the CGE approach, much of the chapter is also applicable to those models.

Suggested Citation

  • Kenneth W. Clements & Haiyan Liu & Marc Jim M. Mariano & Eliyathamby A. Selvanathan & Saroja Selvanathan & George Verikios, 2025. "Demand Analysis for CGE Modelling and EDM I: Main Results," Springer Books, in: Short-cut Demand Elasticities and Other Convenient Approaches to Consumer Demand, chapter 0, pages 181-208, Springer.
    • Handle: RePEc:spr:sprchp:978-981-96-3588-7_10
    DOI: 10.1007/978-981-96-3588-7_10
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