Policy Analysis Using a Computable General Equilibrium Model: A Review of Experience at the IMPACT Project

Parmenter, Brian R.; Meagher, Gerald

doi:10.1111/j.1467-8462.1985.tb00475.x

Cited by 11 publications

(3 citation statements)

References 9 publications

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“…1 Surveys of general equilibrium modelling in Australia include: Parmenter and Meagher (1985), Powell and Lawson (1990), Vincent (1990), Powell and Snape (1993) and Dee (1994). 2 See Rimmer (1999, 2000) and Murphy (1999).…”

Section: Notesmentioning

confidence: 99%

The Australia—China Free Trade Agreement: Some Modelling Issues

Dixon

2007

Journal of Industrial Relations

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General equilibrium modelling has been used to analyse many policy proposals. This article aims to help non-modellers assess general equilibrium analyses, particularly of a potential Australia—China free trade agreement (FTA). General equilibrium modelling is effective in studies of unilateral tariff reductions. However, most general equilibrium modelling assumes given technologies and information. For issues where the essence is technology transfer and new information, general equilibrium models can only produce results after most of the analysis has been done outside the model. In an Australia—China FTA, tariff cuts may be only a small part of the package. The main part may be goodwill, technology transfer and increased mutual awareness. Thus, for analysing FTAs, general equilibrium modelling is of limited value. The only conclusion for Australia that general equilibrium modelling of an Australia—China FTA can deliver with any certainty is that such an agreement will cause significant contraction in the Australian clothing industry.

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Section: Notesmentioning

confidence: 99%

The Australia—China Free Trade Agreement: Some Modelling Issues

Dixon

2007

Journal of Industrial Relations

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“…In the middle of the decade Parmenter and Meagher (1985) contrasted policy-analytic and forecasting uses of an applied GE model, gave a taxonomy of the major ORANI-based policy studies then current, and summarised the main themes that emerged from these policy studies. Powell and Lawson (1990) reviewed the decade of applied GE modelling in Australia ending in 1987, and came to conclusions about the essential ingredients for success in a project of this kind.…”

Section: Reviews Of Applications and Experience In Team Modellingmentioning

confidence: 99%

A Decade of Applied General Equilibrium Modelling at the University of Melbourne

Powell

1993

J of App Econs and Policy

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a7 1982); namely, the development of the GEMPACK computer modelling environment. In Section 6 some significant applied GE developments with less of an ORANI focus are mentioned. Section 7 contains details of graduate student involvement: whilst viewing their professional formation as part of the "tool-kit" strains the analogy somewhat, this investment in human capital is of importance comparable to the methodological developments surveyed.2. Survey of review papers 2.1 Relationship of applied general equilibrium to macro models By the late 'seventies policy economists had become used to the idea that there was more than one sort of model available. Applied macro modellers and members of the newer school of applied general equilibrium economics behaved as if the other party simply did not exist. At the beginning of the decade under review I explored the scope for reconciliation between the two schools (Powell, 1981), and saw some hope of rapprochement between them. This was evident in the success of Cooper and McLaren (1980, 1982; see also Cooper, 1983, andPowell, 1985) in interfacing a small continuous-time macro model (RBII) with a large applied general equilibrium model (ORANI).Parsell, Powell and Wilcoxen (1989,1991) noted that the developments in theoretical open-economy macro models of the 1980s had been taken up by some applied workers (as in the Murphy Model by Chris Murphy and in the MSG2 Model by Warwick McKibbin and Jeffrey Sachs), and that this had considerably narrowed the gap between applied GE and macm-modelsconsequently, the chances for a synthesis of the two schools had never looked better. This was because the new applied macro modellers were insisting that their models converged over time to neo-classically interpretable steady states or balanced growth paths: this implied, among other things, that agents (including governments) were restrained by intertemporal budget constraints.Cooper and McLaren's work was recently revived using a modern macro model with rational expectations in financial markets (Breece. McLaren, Murphy and Powell, 1991). Although some conflicts in model design remained

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“…A complete listing of the current data base is given in Blampied (1985). The model has been applied to a wide variety of issues in Australian economic policy, a review of that experience being provided in Parmenter and Meagher (1985). The standard version of ORANl is not well suited to analysing a change in the tax mix because the income-expenditure loop is not closed.…”

Section: The Orani-naga Modelmentioning

confidence: 99%

Taxation Reform and Income Distribution in Australia

Meagher

Agrawal

1986

Australian Economic Review

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This article contains an analysis of the effects of changes in the existing tax mix on the distribution of income in Australia. Shifts from direct to indirect taxes, similar to 'Option C' in the Government's Draft White Paper on tax reform, are considered. The general equilibrium effects of the policy changes are analysed using an extended version of the ORANI model of the Australian economy. The Shorrocks I 0 index is then used to identify the sources of inequality in the pre- and post-change distributions. The results are based on data from the ABS Income and Housing Survey for 1981-82. Copyright 1986 The University of Melbourne, Melbourne Institute of Applied Economic and Social Research.

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Policy Analysis Using a Computable General Equilibrium Model: A Review of Experience at the IMPACT Project

Cited by 11 publications

References 9 publications

The Australia—China Free Trade Agreement: Some Modelling Issues

The Australia—China Free Trade Agreement: Some Modelling Issues

A Decade of Applied General Equilibrium Modelling at the University of Melbourne

Taxation Reform and Income Distribution in Australia

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