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Evidence-based Trade Policy Decision Making in Australia and the Development of Computable General Equilibrium Modelling

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  • Peter B. Dixon

Abstract

This paper explains why evidence-based trade policy decision making is heavily reliant on results generated by CGE models and why the development and application of these modelling has been particularly active in Australia. The paper provides a short history of CGE modelling and describes the impetus to the field provided by two factors: (a) the failures of less theoretically formal approaches; and (b) the recognition of the ability of CGE modelling to handle policy-relevant detail. The paper argues that CGE modelling flourished in Australia because Australia had the right issue, the right institutions and the right model.

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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-163.

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Date of creation: Oct 2006
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Handle: RePEc:cop:wpaper:g-163
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Keywords: Trade policy; CGE modeling;

Find related papers by JEL classification:

  • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
  • A11 - General Economics and Teaching - - General Economics - - - Role of Economics; Role of Economists
  • F14 - International Economics - - Trade - - - Empirical Studies of Trade

This paper has been announced in the following NEP Reports:

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  1. Peter B. Dixon & Maureen T. Rimmer & Marinos E. Tsigas, 2004. "Macro, industry and state effects in the U.S. of removing major tariffs and quotas," Centre of Policy Studies/IMPACT Centre Working Papers g-146, Victoria University, Centre of Policy Studies/IMPACT Centre.
  2. John B. Shoven & John Whalley, 1973. "General Equilibrium with Taxes: A Computational Procedure and an Existence Proof," Review of Economic Studies, Oxford University Press, vol. 40(4), pages 475-489.
  3. N/A, 1985. "General Policy," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 112-117.
  4. Shoven, John B & Whalley, John, 1984. "Applied General-Equilibrium Models of Taxation and International Trade: An Introduction and Survey," Journal of Economic Literature, American Economic Association, vol. 22(3), pages 1007-51, September.
  5. Shoven,John B. & Whalley,John, 1992. "Applying General Equilibrium," Cambridge Books, Cambridge University Press, number 9780521319867, November.
  6. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, March.
  7. N/A, 1985. "General Policy," India Quarterly: A Journal of International Affairs, , vol. 41(1), pages 74-79.
  8. Bandara, Jayatilleke S, 1991. " Computable General Equilibrium Models for Development Policy Analysis in LDCs," Journal of Economic Surveys, Wiley Blackwell, vol. 5(1), pages 3-69.
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Cited by:

  1. Truong P. Truong, 2010. "Review of Analytical Tools for Assessing Trade and Climate Change Linkages," ARTNeT Working Papers 81, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

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