Systematic literature review on computable general equilibrium applications in tourism

2021 ◽  
pp. 135481662110069
Author(s):  
Kanchana Wickramasinghe ◽  
Athula Naranpanawa
Keyword(s):  
Literature Review ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Climate Change Impacts ◽  
Future Research ◽  
New Developments ◽  
Cge Models ◽  
Cge Modelling ◽  
Versatile Tool ◽  
Geographical Bias

Assessment of the economy-wide impacts of tourism has increased importance due to the unprecedented impacts of COVID-19. Computable general equilibrium (CGE) approach is a versatile tool for estimating the economy-wide impacts of tourism, as opposed to alternative general equilibrium approaches and partial equilibrium approaches. However, there has not been any systematic review done on CGE applications in tourism literature. The article reviews CGE applications in tourism over the past 25 years using a systematic quantitative literature review approach. This review presents potentially important applications of CGE models in guiding post-COVID tourism. Further, the article highlights the new developments in CGE modelling, which are yet to be adopted in tourism economics. Existing studies show a strong geographical bias. Notable research gaps exist in the areas of poverty, inequality, gender, environmental and the climate change impacts of tourism. Future research in these areas will be vital to effectively guide post-COVID tourism recovery.

scholarly journals Constructing the Computable General Equilibrium (CGE) To Analyse the Impact of Goods and Services Tax (GST) on Government Revenue and Targeted Household of M40 and B40 in Malaysia

2019 ◽  
Vol 16 (2) ◽  
Author(s):  
Suriyani Binti Saidi ◽  
Mukaramah Binti Harun ◽  
Norrazman Zaiha Bin Zainol
Keyword(s):  
General Equilibrium ◽  
Policy Analysis ◽  
Computable General Equilibrium ◽  
Research Work ◽  
Future Research ◽  
Cge Model ◽  
Government Revenue ◽  
Model Framework ◽  
Cge Models ◽  
The Impact

Computable general equilibrium (CGE) models have been widely used in economic policy analysis in recent years. The selection of the model is based on the CGE model’s ability to see the effects on sectors, household groups, governments, and even able to see the overall economic impact for a time period. In Malaysia, the issues arise from the impact of policies analysed in the CGE modelling framework have been constrained in part by the completion of a Social Accounting Matrix (SAM). The main purpose of this paper is to propose a new Malaysian CGE model framework to analyse the impact of implementation of GST on government revenue and welfare of targeted household groups of B40 and M40 in Malaysia. The CGE model developed in the present paper is based on more recent data in Malaysian SAM (2014). Then the data was modified to suit with Malaysian CGE for GST, namely the MYGST_CGE model. This paper describes the structure of MYGST_CGE, with 33 activities, 33 commodities, 7 types of labour, and 7 categories of household groups were constructed. The CGE utilized in the present study can be applied to answer questions concerning whether GST implementation would have the trade-off between government revenue and the targeted groups by taking into account the elements of GST such as standard-rate, zero-rate and exempted rate. For the purpose of policy analysis, simulation exercises are conducted using the multi-sectoral, multi-factorial and multi-households approach. Based on the proposed framework model review, the instruments used for measurement of effectiveness and welfare were C-efficiency ratio, regressive, progressive, equivalent variation and simulations. The paper will give an opportunity for future research work in a related area.  

scholarly journals The Issue of Macroeconomic Closure Revisited and Extended

2016 ◽  
Vol 66 (1) ◽  
pp. 1-31
Author(s):  
Ernő Zalai ◽  
Tamás Révész
Keyword(s):  
General Equilibrium ◽  
Open Economy ◽  
Computable General Equilibrium ◽  
Statistical Data ◽  
Competitive Equilibrium ◽  
Numerical Models ◽  
Cge Model ◽  
Sector Model ◽  
Cge Models ◽  
Policy Simulations

Léon Walras (1874) had already realised that his neo-classical general equilibrium model could not accommodate autonomous investments. In the early 1960s, Amartya Sen analysed the same issue in a simple, one-sector macroeconomic model of a closed economy. He showed that fixing investment in the model, built strictly on neo-classical assumptions, would make the system overdetermined, and thus one should loosen some neo-classical conditions of competitive equilibrium. He analysed three not neo-classical “closure options”, which could make the model well-determined in the case of fixed investment. His list was later extended by others and it was shown that the closure dilemma arises in the more complex computable general equilibrium (CGE) models as well, as does the choice of adjustment mechanism assumed to bring about equilibrium at the macro level. It was also illustrated through several numerical models that the adopted closure rule can significantly affect the results of policy simulations based on a CGE model. Despite these warnings, the issue of macro closure is often neglected in policy simulations. It is, therefore, worth revisiting the issue and demonstrating by further examples its importance, as well as pointing out that the closure problem in the CGE models extends well beyond the problem of how to incorporate autonomous investments into a CGE model. Several closure rules are discussed in this paper and their diverse outcomes are illustrated by numerical models calibrated on statistical data. First, the analyses are done in a one-sector model, similar to Sen’s, but extended into a model of an open economy. Next, the same analyses are repeated using a fully-fledged multi-sectoral CGE model, calibrated on the same statistical data. Comparing the results obtained by the two models it is shown that although they generate quite similar results in terms of the direction and — to a somewhat lesser extent — of the magnitude of change in the main macro variables using the same closure option, the predictions of the multi-sectoral CGE model are clearly more realistic and balanced.

scholarly journals Rice and Wheat Tariff Impact in Bangladesh: CGE Analysis Using Gtap Model

2019 ◽  
Vol 11 (10) ◽  
pp. 63
Author(s):  
Syed Shoyeb Hossain ◽  
Huang Delin
Keyword(s):  
General Equilibrium ◽  
South Asian ◽  
Equilibrium Model ◽  
Computable General Equilibrium ◽  
Computable General Equilibrium Model ◽  
General Equilibrium Model ◽  
Relative Price ◽  
Agricultural Crop ◽  
Asian Countries ◽  
Cge Models

Computable General Equilibrium (CGE) models are mostly used for agricultural market analysis globally. This paper constructs a Computable General Equilibrium model using Global Trade Analysis Project (GTAP) model followed by the GTAP 9A database. The primary aim of this paper is to analyze the potential impact of tariff increase on Agricultural crop sectors (Rice and Wheat) in Bangladesh and then describes the construction of the database. It also attempts to detect the trend of the tariff change impact on rice and wheat production in Bangladesh and other South Asian countries. Using database reference year 2011, this paper builds a computable general equilibrium model to measure the Tariff impact in Bangladesh. Result of the model suggests that if an import tariff is imposed, it will affect domestic-foreign relative price between Bangladesh and other south Asian countries. Bilateral trade between Bangladesh and South Asia country will decline sharply. Finally, this paper explained the policy scenario, data sources, and processing methods in details.

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.

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 Climate-change feedback on economic growth: explorations with a dynamic general equilibrium model

2010 ◽  
Vol 15 (5) ◽  
pp. 515-533 ◽  
Author(s):  
FABIO EBOLI ◽  
RAMIRO PARRADO ◽  
ROBERTO ROSON
Keyword(s):  
Climate Change ◽  
Economic Growth ◽  
General Equilibrium ◽  
Computable General Equilibrium ◽  
Wealth Distribution ◽  
Climate Change Impacts ◽  
Economic Activities ◽  
Production And Consumption ◽  
The World ◽  
Emissions Intensity

ABSTRACTHuman-generated greenhouse gases depend on the level and emissions intensity of economic activities. Therefore, most climate-change studies are based on the models and scenarios of economic growth. Economic growth itself, however, is likely to be affected by climate-change impacts. These impacts affect the economy in multiple and complex ways: changes in productivity, resource endowments, production and consumption patterns. We use a new dynamic, multi-regional computable general equilibrium (CGE) model of the world economy to answer the following questions: Will climate-change impacts significantly affect growth and wealth distribution in the world? Should forecasts of human-induced greenhouse gas emissions be revised, once the climate-change impacts are taken into account? We found that, even though economic growth and emission paths do not change significantly at the global level, relevant differences exist at the regional and sectoral level. In particular, developing countries appear to suffer the most from the climate-change impacts.

scholarly journals CLIMATE CHANGE CHALLENGES FACING SRI LANKA: A LITERATURE REVIEW

2021 ◽  
Author(s):  
S.P.M. Dasandara ◽  
◽  
U. Kulatunga ◽  
M.J.B. Ingirige ◽  
T. Fernando ◽  
...  
Keyword(s):  
Climate Change ◽  
Sri Lanka ◽  
Literature Review ◽  
Climate Change Impacts ◽  
Future Research ◽  
Mitigation And Adaptation ◽  
Adverse Weather ◽  
Temperature Levels ◽  
Earth’S Climate ◽  
The Many

The earth’s climate has changed throughout history and climate change can be identified as an inevitable phenomenon which is being experienced by the whole world. When considering the Sri Lankan context, it is no different to the global context in that the country’s climate has already changed. Sri Lanka, being an island state, is vulnerable to many climate change impacts including high-temperature levels, adverse weather events, sea level rising, and changes in precipitation patterns. The many challenges that arise from these climate-related issues are projected to continue through this century and beyond. Thus, climate change mitigation and adaptation have become the most appropriate ways to restrain these climate change challenges in Sri Lanka. It is paramount to get a broad understanding of how disastrous these climate change challenges are, prior to implementing appropriate responses to overcome them. This urges the need for conducting an in-depth investigation of prevailing climate change challenges in Sri Lanka. Thus, this study presents the prevailing climate change challenges facing Sri Lanka through a conceptual framework, that has been developed based on the existing literature. The developed framework reveals how these prevailing climate changes can lead to a number of challenges. These challenges were identified under three main categories as economic, social, and environmental challenges. The knowledge generated through this literature review will be the focus of future research.

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