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The Contribution of Applied General Equilibrium Analysis to Policy Reform in Australia

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  • Alan A. Powell
  • Richard H. Snape

Abstract

Applied general equilibrium (GE) modelling is widely used by Australian federal government agencies involved in policy making. With the possible exception of Norway, this situation seems to be unique to Australia. The present paper traces the history of the IMPACT Project, an initiative of the Australian Industry (formerly Industries Assistance) Commission in association with a number of Australian universities, which has been instrumental in securing the widespread acceptance of the GE method in applied policy economics. We note, inter alia, that the largest loser from Australia's manufacturing protectionism, namely her export-oriented farm sector, has adopted the GE approach in pressing its case to government. We ask the question: 'To what extent has applied GE modelling been influential in achieving the turn around in Australia's stance to commercial policy?' We present the relevant evidence in abbreviated form, but leave the answer to the reader.

Suggested Citation

  • Alan A. Powell & Richard H. Snape, 1992. "The Contribution of Applied General Equilibrium Analysis to Policy Reform in Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-98, Victoria University, Centre of Policy Studies/IMPACT Centre.
  • Handle: RePEc:cop:wpaper:g-98
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    Cited by:

    1. Y. Qiang, 1999. "CGE Modelling and Australian Economics," Economics Discussion / Working Papers 99-04, The University of Western Australia, Department of Economics.
    2. Anderson, Kym & Martin, Will & van der Mensbrugghe, Dominique, 2013. "Estimating Effects of Price-Distorting Policies Using Alternative Distortions Databases," Handbook of Computable General Equilibrium Modeling, Elsevier.
    3. Hertel, Thomas, 2013. "Global Applied General Equilibrium Analysis Using the Global Trade Analysis Project Framework," Handbook of Computable General Equilibrium Modeling, Elsevier.
    4. Piermartini, Roberta & Teh, Robert, 2005. "Demystifying modelling methods for trade policy," WTO Discussion Papers 10, World Trade Organization (WTO), Economic Research and Statistics Division.
    5. Anderson, Kym, 2004. "Setting the Trade Policy Agenda: What Roles for Economists?," Working Papers 14574, International Agricultural Trade Research Consortium.
    6. Peter B. Dixon & Maureen T. Rimmer & Rajesh Chadha & Devender Pratap & Anjali Tandon, 2016. "A CGE model for India with an application on the effects of eliminating agricultural subsidies," Centre of Policy Studies/IMPACT Centre Working Papers g-265, Victoria University, Centre of Policy Studies/IMPACT Centre.
    7. Anita King, 2012. "Economy-Wide Impacts of Industry Policy," Treasury Working Paper Series 12/05, New Zealand Treasury.
    8. Alan A. Powell, 1998. "When Modellers Behave Like Lawyers: Have we Lost The Plot?," Centre of Policy Studies/IMPACT Centre Working Papers g-125, Victoria University, Centre of Policy Studies/IMPACT Centre.
    9. Philip D. Adams & Peter B.Dixon, 1996. "Reaching the planners: Generating detailed commodity Forecasts from a computable general equilibrium model," Centre of Policy Studies/IMPACT Centre Working Papers op-83, Victoria University, Centre of Policy Studies/IMPACT Centre.
    10. Michael Malakellis, 1997. "Should Tariff Reductions be Announced? An Intertemporal Computable General Equilibrium Analysis," Centre of Policy Studies/IMPACT Centre Working Papers op-88, Victoria University, Centre of Policy Studies/IMPACT Centre.
    11. Alan A. Powell, 1993. "Integrating Econometric and Environmetric Modelling," Centre of Policy Studies/IMPACT Centre Working Papers g-102, Victoria University, Centre of Policy Studies/IMPACT Centre.
    12. Dixon, Peter B. & Koopman, Robert B. & Rimmer, Maureen T., 2013. "The MONASH Style of Computable General Equilibrium Modeling: A Framework for Practical Policy Analysis," Handbook of Computable General Equilibrium Modeling, Elsevier.
    13. Devarajan, Shantayanan & Robinson, Sherman, 2002. "The influence of computable general equilibrium models on policy," TMD discussion papers 98, International Food Policy Research Institute (IFPRI).
    14. Anderson, Kym, 2003. "Impact assessment of IFPRI's research and related activities based on economywide modeling," Impact assessments 21, International Food Policy Research Institute (IFPRI).

    More about this item

    JEL classification:

    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models

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