Comparison of Input–Output, Input–Output + Econometric and Computable General Equilibrium Impact Models at the Regional Level

1995 ◽  
Vol 7 (2) ◽  
pp. 209-227 ◽  
Author(s):  
Guy R. West
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Regional Level ◽  
Input Output ◽  
Impact Models

Constructing a Database for Computable General Equilibrium Modeling of Sydney, Australia, Transport Network

2017 ◽  
Vol 2606 (1) ◽  
pp. 54-62
Author(s):  
Edward Robson ◽  
Vinayak V. Dixit
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Transport Network ◽  
Data Sources ◽  
Input Output ◽  
Output Table ◽  
Cge Models ◽  
Level Of Aggregation ◽  
Future Work ◽  
Sydney Australia

In the search for benefits to justify transport projects, economic appraisals have increasingly incorporated the valuation of impacts to the wider economy. Computable general equilibrium (CGE) models provide a framework to estimate these impacts by simulating the interactions of urban economies and transport networks. In CGE models, households and firms are represented by microeconomic behavioral functions, and markets adjust according to prices. As markets both inside and outside the transport network are taken into account, a wide variety of measures that can assist in economic appraisals can be extracted. However, urban CGE models are computationally burdensome and require detailed, spatially disaggregate data. This paper discusses the methodology used to develop a database, including an input–output table, for the calibration of an urban CGE model for Sydney, Australia. Official and publicly available data sources were manipulated by using a number of mathematical and statistical techniques to compile a table for 249 regions and 20 sectors across Sydney. Issues, such as determining the appropriate level of aggregation, generating incomplete data, and managing conflicting data, that other input–output table developers may encounter when constructing multiregional tables were addressed in the study. The table entries themselves were mapped and explored, as they provide a useful study of the spatial economy of Sydney. Future work will focus on streamlining the construction of input–output tables and incorporating new data sources.

Embedding New Technologies and Extending Time Horizons in Input-Output Analysis

2013 ◽  
pp. 192-204
Author(s):  
Randall W. Jackson ◽  
Christa D. Court
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
New Technologies ◽  
Input Output ◽  
Economic Shocks ◽  
Output Analysis ◽  
Input Output Analysis ◽  
Time Horizons ◽  
Economic Behaviors

Input-output analysts are often confronted with requests for impacts assessments for economic shocks that stretch uncomfortably the assumptions of standard input-output modeling. This chapter presents an approach to confronting a subset of these challenges straightforwardly in a way that ameliorates some of the more restrictive input-output assumptions, maintains the inter-industry detail of the input-output model, and enhances the representation of certain economic behaviors without the additional complexities of moving to more complex computable general equilibrium or conjoined econometric input-output models. The authors conclude with the observation that direct changes to the input-output framework most often necessitate further modifications requiring additional behavioral assumptions and decisions on the part of the modeler.

Simulating Impacts on Regional Economies

2013 ◽  
pp. 132-152 ◽  
Author(s):  
Guy R. West ◽  
Randall W. Jackson
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Full Range ◽  
Data Availability ◽  
Regional Economies ◽  
Input Output ◽  
Computable General Equilibrium Models ◽  
Sire Model ◽  
Cge Models ◽  
Regional Impacts

Practitioners and academics apply a range of regional economic models for impacts assessment. These models extend from a simple economic base through to input-output and econometric models and computable general equilibrium models. All such models have strengths and weaknesses. Dimensions of which impact assessment models are often compared include level of industry detail, data availability, and complexity of behaviour modelled. This chapter presents a model for Simulating Impacts on Regional Economies (SIRE) that occupies an intermediate position between Input-Output (IO), arguably the most widely used model for regional impacts assessments, and Computable General Equilibrium (CGE) models. With greater behavioural detail than the typical regional IO model, the SIRE model incorporates many of the features of CGE models without enforcing the strictly linear behavioural relationships of IO. Like most CGE models, the simulation framework presented here borrows a subset of parameters from an existing econometric model for the same region. The SIRE model falls short, however, of the complexity of capturing the full range of behaviours of CGE models.

Simulating Impacts on Regional Economies

2014 ◽  
pp. 1064-1083
Author(s):  
Guy R. West ◽  
Randall W. Jackson
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Full Range ◽  
Data Availability ◽  
Regional Economies ◽  
Input Output ◽  
Computable General Equilibrium Models ◽  
Sire Model ◽  
Cge Models ◽  
Regional Impacts

Practitioners and academics apply a range of regional economic models for impacts assessment. These models extend from a simple economic base through to input-output and econometric models and computable general equilibrium models. All such models have strengths and weaknesses. Dimensions of which impact assessment models are often compared include level of industry detail, data availability, and complexity of behaviour modelled. This chapter presents a model for Simulating Impacts on Regional Economies (SIRE) that occupies an intermediate position between Input-Output (IO), arguably the most widely used model for regional impacts assessments, and Computable General Equilibrium (CGE) models. With greater behavioural detail than the typical regional IO model, the SIRE model incorporates many of the features of CGE models without enforcing the strictly linear behavioural relationships of IO. Like most CGE models, the simulation framework presented here borrows a subset of parameters from an existing econometric model for the same region. The SIRE model falls short, however, of the complexity of capturing the full range of behaviours of CGE models.

scholarly journals Regional disaster impact analysis: comparing input–output and computable general equilibrium models

2016 ◽  
Vol 16 (8) ◽  
pp. 1911-1924 ◽  
Author(s):  
Elco E. Koks ◽  
Lorenzo Carrera ◽  
Olaf Jonkeren ◽  
Jeroen C. J. H. Aerts ◽  
Trond G. Husby ◽  
...  
Keyword(s):  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Geographical Area ◽  
Regional Distribution ◽  
Economic Losses ◽  
Input Output ◽  
Disaster Impact ◽  
Cge Models ◽  
Italian Regions

Abstract. A variety of models have been applied to assess the economic losses of disasters, of which the most common ones are input–output (IO) and computable general equilibrium (CGE) models. In addition, an increasing number of scholars have developed hybrid approaches: one that combines both or either of them in combination with noneconomic methods. While both IO and CGE models are widely used, they are mainly compared on theoretical grounds. Few studies have compared disaster impacts of different model types in a systematic way and for the same geographical area, using similar input data. Such a comparison is valuable from both a scientific and policy perspective as the magnitude and the spatial distribution of the estimated losses are born likely to vary with the chosen modelling approach (IO, CGE, or hybrid). Hence, regional disaster impact loss estimates resulting from a range of models facilitate better decisions and policy making. Therefore, this study analyses the economic consequences for a specific case study, using three regional disaster impact models: two hybrid IO models and a CGE model. The case study concerns two flood scenarios in the Po River basin in Italy. Modelling results indicate that the difference in estimated total (national) economic losses and the regional distribution of those losses may vary by up to a factor of 7 between the three models, depending on the type of recovery path. Total economic impact, comprising all Italian regions, is negative in all models though.

A comparison of economic impact assessment methods: the case of forestry developments in Alberta

1998 ◽  
Vol 28 (5) ◽  
pp. 711-719 ◽  
Author(s):  
Janaki RR Alavalapati ◽  
Wiktor L Adamowicz ◽  
William A White
Keyword(s):  
General Equilibrium ◽  
Policy Analysis ◽  
Impact Assessment ◽  
Economic Impact ◽  
Computable General Equilibrium ◽  
Economic Impacts ◽  
Forest Policy ◽  
Input Output ◽  
Cge Models ◽  
Economic Impact Assessment

Economic impacts of forestry developments in Alberta are estimated using two interindustry approaches. The results suggest that estimates derived from input-output (I-O) models differ from those of computable general equilibrium (CGE) models. Employment and GDP estimates derived from CGE models are much smaller than those of I-O models. Unlike I-O estimates, estimates derived from CGE models are not unidirectional because of general equilibrium effects. The results also indicate that CGE models provide greater flexibility and have more potential for forest policy analysis when compared with I-O models, but they should be used with caution.

scholarly journals TRADE LIBERALIZATION AND ITS EFFECTS ON SUGAR TABLE INDUSTRY, WELFARE, AND ECONOMY: A CASE OF INDONESIA

2018 ◽  
Vol 2 (1) ◽  
Author(s):  
Gunawan Muhamad ◽  
Ario Seno Nugroho
Keyword(s):  
General Equilibrium ◽  
Trade Liberalization ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Consumer Welfare ◽  
Computable General Equilibrium Model ◽  
General Equilibrium Model ◽  
Tariff Rate ◽  
Input Output ◽  
The Government

ABSTRACT:       This paper examines the effects of trade liberalization on the sugar industry, the consumer welfare, and the whole economy in Indonesia using a computable general equilibrium model based on 2008 Indonesia Input-Output Table. The common argument concerning the effects of trade liberalization is that consumers benefit from trade liberalization while domestic industries suffer from that. However, this paper found that both the consumers and the domestic industries suffer from trade liberalization scenario. The smaller the tariff rate, even if the subsidy rate was applied, the lower the welfare and the utility. The more decrease in the consumer’s welfare and in the utility would be suffered when the trade liberalization scenario was financed by increasing the production tax rate or the income rate. Finally, when the tariff rate was increased and assumed that the government consumption would adjust, the consumer’s welfare, the utility and the overall producer’s income would increase. Even though, the domestic producer in the sugarcane and sugar refinery industry would suffer. Finally, manufacturing sector seems has the highest benefit from trade liberalization while in the agriculture sector is estimated has a minor outcome. Key Words: Trade Liberalization, Computable General Equilibrium (CGE), Sugar, Welfare, UtilityABSTRACT:       Makalah ini membahas dampak liberalisasi perdagangan terhadap industri gula, kesejahteraan konsumen, dan keseluruhan ekonomi di Indonesia dengan menggunakan computable general equilibrium model yang dihitung berdasarkan Tabel Input-Output Indonesia tahun 2008. Perdebatan umum mengenai efek dari liberalisasi perdagangan adalah bahwa konsumen mendapat manfaat dari liberalisasi perdagangan sementara industri dalam negeri menderita dari perdagangan bebas. Namun, dari hasil penelitian ini, peneliti menemukan bahwa konsumen dan industri domestik, sama-sama menderita dari skenario liberalisasi perdagangan. Semakin kecil tingkat tarif, meskipun dengan pemberian subsidi oleh pemerintah, maka semakin rendah tingkat kesejahteraan konsumen dan utilitas. Penurunan kesejahteraan konsumen dan utilitas yang lebih besar akan diderita ketika skenario liberalisasi perdagangan dibiayai dengan menaikkan tarif pajak produksi atau tarif pajak penghasilan.  Akhirnya, ketika tingkat tarif meningkat dan diasumsikan bahwa konsumsi pemerintah akan disesuaikan, kesejahteraan konsumen, utilitas dan pendapatan produsen secara keseluruhan akan meningkat. Meski demikian, produsen dalam negeri di industri tebu dan gula rafinasi akan menderita. Akhirnya, sektor manufaktur diperkirakan mendapat manfaat tertinggi dari liberalisasi perdagangan, sedangkan di sektor pertanian, diperkirakan mendapat manfaat yang rendah.Kata kunci: Liberalisasi Perdagangan, Computable General Equilibrium (CGE) Gula,  Kesejahteraan, Utilitas

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