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Johansen's contribution to CGE modelling: originator and guiding light for 50 years

  • Peter B. Dixon
  • Maureen T. Rimmer

Fifty years ago the Norwegian economist, Leif Johansen, gave us what is now recognised as the first CGE model. While Johansen was first, he is not the father of the whole field. CGE modelling in different styles sprang largely independently from several sources. This paper describes how Johansen's style of CGE modelling took root in Australia in the 1970s and has from there spread to the rest of the world. Today, thousands of economists from nearly every country are undertaking Johansen-style CGE modelling to elucidate policy questions in trade, taxation, environment, labour markets, immigration, income distribution, technology, resources, micro-economic reform and macro stabilization.

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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-203.

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Date of creation: May 2010
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Handle: RePEc:cop:wpaper:g-203
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