Use Of Computable General Equilibrium Models Research Articles

Assessing the ex ante economic impacts of transportation infrastructure policies in Brazil

This paper uses a fully operational inter-regional computable general equilibrium (CGE) model implemented for the Brazilian economy, based on previous work by Haddad and Hewings, in order to assess the likely economic effects of road transportation policy changes in Brazil. Among the features embedded in this framework, modelling of external scale economies and transportation costs provides an innovative way of dealing explicitly with theoretical issues related to integrated regional systems. The model is calibrated for 109 regions. The explicit modelling of transportation costs built into the inter-regional CGE model, based on origin–destination flows, which takes into account the spatial structure of the Brazilian economy, creates the capability of integrating the inter-regional CGE model with a geo-coded transportation network model enhancing the potential of the framework in understanding the role of infrastructure on regional development. The transportation model used is the so-called Highway Development and Management, developed by the World Bank, implemented using the software TransCAD. Further extensions of the current model specification for integrating other features of transport planning in a continental industrialising country like Brazil are discussed, with the goal of building a bridge between conventional transport planning practices and the innovative use of CGE models. In order to illustrate the analytical power of the integrated system, the authors present a set of simulations, which evaluate the ex ante economic impacts of physical/qualitative changes in the Brazilian road network (for example, a highway improvement), in accordance with recent policy developments in Brazil. Rather than providing a critical evaluation of this debate, they intend to emphasise the likely structural impacts of such policies. They expect that the results will reinforce the need to better specifying spatial interactions in inter-regional CGE models.

Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis

Partridge M. D. and Rickman D. S. Computable general equilibrium (CGE) modelling for regional economic development analysis, Regional Studies. Despite their long-standing use in economic policy analysis generally, and increasing popularity in regional policy analysis, computable general equilibrium (CGE) models have yet to become the dominant approach for analysis of regional economic development policies. This review discusses the likely reasons for the limited use of CGE models for regional economic development analysis, particularly for small regions. It also proposes methodological improvements that would likely lead to the wider use of CGE models in economic development practice. A central theme is the need for a model that can be empirically demonstrated to capture the relevant policy components and the structure of the region of study. Partridge M. D. et Rickman D. S. La modélisation CGE dans l'analyse du développement économique régional, Regional Studies. En dépit de leur emploi généralisé de longue date dans l'analyse de la politique économique, et malgré leur popularité croissante dans l'analyse de la politique régionale, la modélisation CGE doit encore devenir la façon dominante dans les politiques de développement économique régional. Cet article cherche à présenter les raisons qui risquent d'expliquer l'emploi limité des modèles CGE dans l'analyse du développement économique régional, en particulier pour ce qui est des petites régions. L'article cherche aussi à proposer des améliorations méthodologiques qui entraîneraient l'emploi plus généralisé des modèles CGE dans le développement économique en pratique. Un aspect central est le besoin d'un modèle susceptible de capter de manière empirique les éléments clés d'une politique et la structure de la région à étudier. Régional Equilibre général sur ordinateur (CGE) Développement économique régional Partridge M. D. und Rickman D. S. CGE-Modelle für Analysen der regionalen Wirtschaftsentwicklung, Regional Studies. CGE-Modelle kommen in Analysen der Wirtschaftspolitik im Allgemeinen seit langem zum Einsatz und sind zunehmend auch bei Analysen der Regionalpolitik beliebt. Doch bei der Analyse regionalwirtschaftlicher Entwicklungspolitiken sind sie noch nicht zum vorherrschenden Ansatz geworden. In diesem Beitrag werden die möglichen Gründe erörtert, warum CGE-Modelle für Analysen der regionalen Wirtschaftsentwicklung insbesondere im Fall von kleinen Regionen nur begrenzt Anwendung finden. Außerdem werden methodologische Verbesserungen vorgeschlagen, die einen breiteren Einsatz von CGE-Modellen in der Praxis der Wirtschaftsentwicklung ermöglichen könnten. Ein zentrales Thema ist die Notwendigkeit eines Modells, von dem sich empirisch nachweisen lässt, dass es die relevanten politischen Komponenten und die Struktur der untersuchten Region erfasst. Regionale Berechenbares allgemeines Gleichgewicht Regionale Wirtschaftsentwicklung Partridge M. D. y Rickman D. S. Modelo CGE para el análisis del desarrollo económico regional, Regional Studies. Pese a la larga utilización general en los análisis políticos sobre economía y la creciente popularidad en los análisis políticos regionales, los modelos CGE todavía no han llegado a ser enfoques dominantes para el análisis de las políticas de desarrollo económico a nivel regional. En este ensayo exponemos las posibles razones para el uso limitado de modelos CGE para los análisis de desarrollo económico regional, especialmente para pequeñas regiones. También proponemos mejoras metodológicas que probablemente llevarían a un uso más amplio de los modelos CGE en la práctica del desarrollo económico. Un tema central es la necesidad de un modelo que demuestre empíricamente que capta los componentes relevantes de la política y la estructura de la región que se estudia. Regional Equilibrio computable general Desarrollo económico regional

The appropriateness of CGE modelling in analysing the problem of deforestation

PurposeThe paper reviews recent developments in utilising computable general equilibrium (CGE) models to analyse forestry policies. The paper highlights the application of CGE modelling to deforestation and forestry issues.Design/methodology/approachThe analysis is carried out by comparing different CGE models available in the literature, which have analysed the economic consequences of deforestation and changes in forestry policies.FindingsThe use of CGE models in analysing forestry issues is still in its early stages. There is room for innovation and improvement in the various models used.Practical implicationsThe paper emphasises the relevance of general equilibrium analysis in the evaluation of both micro‐ and macro‐economic policies on forestry. It encourages researchers to use general equilibrium analysis in their study of environmental problems.Originality/valueThe paper highlights the contribution and possible benefits of utilising CGE models in analysing environmental problems such as deforestation, especially in the context of environment‐economics trade‐off.

Energy Market Liberalisation in the FSU - Simulations with the GTAP Model

This work considers effects of energy market liberalisation in the countries of the former Soviet Union (FSU). Our analysis is based on a computable general equilibrium (CGE) model called the Global Trade Analysis Project (GTAP). This specialised model makes it possible to evaluate effects in a general equilibrium set-up. Energy market reforms are widely discussed in the literature, but the use of CGE models has been limited. In the main part of the paper, we perform two experiments. The first is a benchmark liberalisation experiment in which all government taxes and subsidies are removed. The second is an attempt to simulate an increase in the export capacity of energy commodities into the European markets. In general, we find that liberalisation of FSU energy markets would increase welfare in the EU countries, while in the FSU welfare would decrease. This result is mainly due to the terms of trade effect, as export prices of FSU countries decrease.