This paper describes a practical and conceptually simple iterative method for solving large dynamic CGE models under rational expectations. Details are given for the MONASH model of Australia but the general approach could be applied to a wide range of dynamic models. The method has been...

MONASH models are descended from Johansen's 1960 model of Norway. The first MONASH model was ORANI, used in Australia's tariff debate of the 1970s. Johansen's influence combined with institutional arrangements in their development gave MONASH models distinctive characteristics, facilitating a...

MONASH models are descended from Johansen's 1960 model of Norway. The first MONASH model was ORANI, used in Australia's tariff debate of the 1970s. Johansen's influence combined with institutional arrangements in their development gave MONASH models distinctive characteristics, facilitating a...

The problem of endowing large applied general equilibrium models with numerical values for parameters is formidable. For example, a complete set of own- and cross-price elasticities of demand for the ORANI model involves 228 squared, or about 60 K items. Invoking the minimal assumptions that...

This paper describes the regional extension of USAGE-ITC, a 500-order dynamic CGE model of the US that we are developing in collaboration with the International Trade Commission. With the regional extension, USAGE-ITC can project the effects on employment and output by state of policy and other...

This paper describes historical and decomposition simulations undertaken for 1992 to 1998 with a 500-sector CGE model of the US. The historical simulation provides estimates of movements in unobservable technology and preference variables. The decomposition simulation explains developments in...

USAGE is a 500 industry dynamic computable general equilibrium model of the US economy being developed at Monash University in collaboration with the US International Trade Commission. In common with the MONASH model of Australia, USAGE is designed for four modes of analysis: Historical, where...

We use a 500-industry CGE model of the U.S. to simulate the macro, industry and state effects of removing major U.S. tariffs and quotas. We find that this would generate a welfare gain of 0.07 per cent. For most industries, the output change would be negligible but for sugar, butter and several...

We derive formulas for the optimal tariff rate in four theoretical models. We start with a model in which industries are competitive and then successively allow for: monopoly pricing by export industries; revenue-replacement costs; and cold-shower effects. The theoretical formulas accurately...

TERM-H2O is a dynamic, multi-regional computable general equilibrium model of the Australian economy with agricultural detail adapted to include regional water accounts. It focuses on the effects of inter-regional water trading. Factors of production are mobile between sectors in farm...