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Applied General Equilibrium Modelling: Achievement, Failure and Potential

Listed author(s):
  • Peter B. Dixon

Over the last twenty years, applied general equilibrium models (AGEMs) have provided useful insights on the likely effects of disturbances in one part of the economy on activity in other parts; e.g. the effects of changes in manufacturing protection on exports of mineral products. On the other hand, AGEM-based analyses of the welfare effects of proposed policy changes have been unconvincing. Nor have forecasts derived from AGE models provided satisfactory guidance to people concerned with investment and other business decisions. This paper explains these views and discusses the research required to move AGE modelling closer to its full potential.

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Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-106.

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Date of creation: Jun 1994
Handle: RePEc:cop:wpaper:g-106
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  1. Peter B. Dixon, 1986. "Prospects for Australian Industries and Occupations, 1985 to 1990," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 19(1), pages 3-28.
  2. Daina McDonald & Peter B. Dixon, 1988. "The Australian Economy: 1987-88 and 1988-89," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 21(2), pages 3-26.
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