Gains and losses from trade liberalization are often unevenly distributed inside a country. For example, if budget shares vary according to household income, changes in commodity prices will redistribute an overall welfare change between household types. Household incomes will also be...

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...

This report builds on an earlier paper discussed by Peter Dixon with the Senate Select Committee on December 18, 1998 which describes a single simulation, with the MONASH model, of the effects of the tax package. A revised version of this simulation is presented here as the central case ;...

The model of endogenous economic growth developed by Paul Romer (1990a) is briefly reviewed and modified by substituting a Solow type consumption function in place of the utility maximising behaviour of consumers. The dynamic system and steady-state growth path of this Solow-Romer model are then...

A small version of ORANI is constructed, incorporating economies of scale and imperfect competition. Economic mechanisms are borrowed from a model constructed by Richard Harris, and described in his 1984 book "Trade, Industrial Policy and Canadian Manufacturing". The miniature Harris-like model...

When a general equilibrium model is solved, there are often a large number of exogenous shocks. The change in each endogenous variable obviously depends on these different shocks. We point out a natural way of decomposing the changes (or percentage changes) in the endogenous variables as sums of...

We investigate the economic consequences of a twelve-month closure of U.S. borders in the form of cessation of trade, tourism and immigration flows. The federal government might contemplate such action in the face of an extreme terrorism or public health threat. Using a computable general...

Australia has made outstanding contributions to the use of quantitative economic models in public policy discussions. That leading role is now threatened by the increasing use of econometric modellers in an advocacy, lawyer-like role, rather than as impartial sources of the best available...

This paper offers a critical comparison between the North American levels school of applied general equilibrium modelling and the Norwegian/Australian school of linearizers. The paper develops both the levels and linearized representations of a neoclassical, multiregion trade model. This...

RunMONASH, a software program, written by Ken Pearson, is used to solve the CGE model, MONASH. RunMONASH produces a base case forecast for a set of years in sequence. In response to some additional policy shocks, RunMONASH calculates a policy deviation from this base case, again for the same...