IDEAS home Printed from https://ideas.repec.org/p/cop/wpaper/ip-74.html
   My bibliography  Save this paper

A General Equilibrium Model of Australia's Premier City

Author

Listed:
  • J. Mark Horridge

Abstract

Australian cities suffer from urban sprawl, leading to long average commute distances and high energy use by urban transport. To investigate this problem, we define and construct a medium-sized general equilibrium model of Australia's second-largest city, Melbourne. Individuals are modelled as utility maximisers who face a discrete number of choices. We follow the logit approach, where the probability of an individual pursuing an option (for example, living in high-density housing in zone A while working in zone B) is proportional to the utility derived from that option, taking into account the cost of the option and the effect of this cost on the total utility obtainable with given income-producing opportunities. The spatial layout of the city, through the cost of travel from one zone to another, influences the pattern of land rents, industrial activity, and housing location and density. As in other general equilibrium models, market-clearing and accounting equations allow the whole economy of the city to be presented within an integrated framework. The result is a fairly general economic model of urban land use and travel demands. We use it to analyse the effects of population growth and policy initiatives on transport usage.

Suggested Citation

  • J. Mark Horridge, 1999. "A General Equilibrium Model of Australia's Premier City," Centre of Policy Studies/IMPACT Centre Working Papers ip-74, Victoria University, Centre of Policy Studies/IMPACT Centre.
  • Handle: RePEc:cop:wpaper:ip-74
    as

    Download full text from publisher

    File URL: http://www.copsmodels.com/ftp/workpapr/ip-74.pdf
    File Function: Initial version, 1999-10
    Download Restriction: no

    File URL: http://www.copsmodels.com/elecpapr/ip-74.htm
    File Function: Local abstract: may link to additional material.
    Download Restriction: no

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Fumitoshi Mizutani & Noriyoshi Nakayama & Tomoyasu Tanaka, 2015. "An Analysis of the Effects of the Compact City on Economic Activities in Japan," ERSA conference papers ersa15p160, European Regional Science Association.
    2. Rodriguez, U-Primo E., 2007. "State-of-the-Art in Regional Computable General Equilibrium Modelling with a Case Study of the Philippines," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 0(Number 1), pages 1-28.
    3. Leonardo Mastronardi & Carlos Adrián Romero & Omar Osvaldo Chisari, 2012. "Local taxes in Buenos Aires City: a general equilibrium effects," EcoMod2012 3879, EcoMod.
    4. Mastronardi, Leonardo Javier, 2013. "Federalismo fiscal en Argentina: Un análisis de efectos spillover mediante un CGE regional
      [Fiscal Federalism in Argentina: An analysis of spillover effects using a regional CGE]
      ," MPRA Paper 54376, University Library of Munich, Germany.
    5. repec:bla:sajeco:v:84:y:2016:i:4:p:574-593 is not listed on IDEAS

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cop:wpaper:ip-74. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Mark Horridge). General contact details of provider: http://edirc.repec.org/data/cpmonau.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.