IDEAS home Printed from https://ideas.repec.org/a/bla/ecorec/v66y1990i2p110-126.html
   My bibliography  Save this article

Calibration of Computable General Equilibrium Models from Synthetic Benchmark Equilibrium Data Sets

Author

Listed:
  • PHILIP D. ADAMS
  • PETER J. HIGGS

Abstract

The most common procedure for estimating the share parameters of a CGE model is to calibrate the model using a particular year‐of‐record benchmark equilibrium data set. In this paper we argue the case for calibration from synthetic benchmark equilibrium data sets which portray the economy in a notional typical year. The development of a synthetic agricultural sector in the benchmark equilibrium data set of the ORANI model of the Australian economy is described Finally a comparison is made of the results from ORANI of an across‐the‐board tariff cut simulation computed with both the synthetic benchmark equilibrium data set and a particular year‐of‐record data set.

Suggested Citation

  • Philip D. Adams & Peter J. Higgs, 1990. "Calibration of Computable General Equilibrium Models from Synthetic Benchmark Equilibrium Data Sets," The Economic Record, The Economic Society of Australia, vol. 66(2), pages 110-126, June.
    • Handle: RePEc:bla:ecorec:v:66:y:1990:i:2:p:110-126
    DOI: 10.1111/j.1475-4932.1990.tb01712.x
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/j.1475-4932.1990.tb01712.x
    Download Restriction: no
    File URL: https://libkey.io/10.1111/j.1475-4932.1990.tb01712.x?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Richard Stone & D. G. Champernowne & J. E. Meade, 1942. "The Precision of National Income Estimates," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 9(2), pages 111-125.
    2. Adams, Philip D., 1987. "Agricultural Supply Response in ORANI," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 55(03), pages 1-17, December.
    3. Clements, Kenneth W, 1980. "A General Equilibrium Econometric Model of the Open Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(2), pages 469-488, June.
    4. Terry Berker & Frederick van der Ploeg & Martin Weale, 1984. "A Balanced System Of National Accounts For The United Kingdom," Review of Income and Wealth, International Association for Research in Income and Wealth, vol. 30(4), pages 461-485, December.
    5. Edward A. Hudson & Dale W. Jorgenson, 1974. "U.S. Energy Policy and Economic Growth, 1975-2000," Bell Journal of Economics, The RAND Corporation, vol. 5(2), pages 461-514, Autumn.
    6. Jorgenson, Dale W & Lau, Lawrence J & Stoker, Thomas M, 1980. "Welfare Comparison under Exact Aggregation," American Economic Review, American Economic Association, vol. 70(2), pages 268-272, May.
    7. Pearson, K. R., 1988. "Automating the computation of solutions of large economic models," Economic Modelling, Elsevier, vol. 5(4), pages 385-395, October.
    8. Peter B. Dixon & B. R. Parmenter & Mark Horridge, 1986. "Forecasting Versus Policy Analysis with the ORANI Model," Centre of Policy Studies/IMPACT Centre Working Papers op-56, Victoria University, Centre of Policy Studies/IMPACT Centre.
    9. J.C. Quiggin & A.B. Stoeckel, 1982. "Protection, Income Distribution, And The Rural Sector," Economic Papers, The Economic Society of Australia, vol. 1(2), pages 57-71, September.
    10. Ballard, Charles L. & Fullerton, Don & Shoven, John B. & Whalley, John, 2009. "A General Equilibrium Model for Tax Policy Evaluation," National Bureau of Economic Research Books, University of Chicago Press, number 9780226036335, September.
    11. Charles L. Ballard & Don Fullerton & John B. Shoven & John Whalley, 1985. "Introduction to "A General Equilibrium Model for Tax Policy Evaluation"," NBER Chapters, in: A General Equilibrium Model for Tax Policy Evaluation, pages 1-5, National Bureau of Economic Research, Inc.
    12. Whalley, John, 1977. "The United Kingdom Tax System, 1968-1970: Some Fixed Point Indications of Its Economic Impact," Econometrica, Econometric Society, vol. 45(8), pages 1837-1858, November.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Andre G Ross & Grant Allan & Gioele Figus & Peter McGregor & J Kim Swales & Karen Turner, 2018. "The economic impacts of UK trade-enhancing industrial policies and their spillover effects on the energy system," Working Papers 1810, University of Strathclyde Business School, Department of Economics.
    2. Fisher, Anthony & Fullerton, David & Hatch, Nile & Reinelt, Peter, 1994. "Alternatives for Managing Drought: A Comparative Cost Analysis," CUDARE Working Papers 198616, University of California, Berkeley, Department of Agricultural and Resource Economics.
    3. Figus, Gioele & McGregor, Peter G. & Swales, J. Kim & Turner, Karen, 2020. "Do sticky energy prices impact the time paths of rebound effects associated with energy efficiency actions?," Energy Economics, Elsevier, vol. 86(C).
    4. Joshua Elliott & Meredith Franklin & Ian Foster & Todd Munson & Margaret Loudermilk, 2012. "Propagation of Data Error and Parametric Sensitivity in Computable General Equilibrium Models," Computational Economics, Springer;Society for Computational Economics, vol. 39(3), pages 219-241, March.
    5. Gioele Figus & Patrizio Lecca & Peter McGregor & Karen Turner, 2017. "Energy efficiency as an instrument of regional development policy? Trading-off the benefits of an economic stimulus and energy rebound effects," Working Papers 1702, University of Strathclyde Business School, Department of Economics.
    6. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    7. Adams, Philip D., 1987. "Agricultural Supply Response in ORANI," Review of Marketing and Agricultural Economics, Australian Agricultural and Resource Economics Society, vol. 55(03), pages 1-17, December.
    8. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , vol. 21(3), pages 205-248, December.
    9. Gioele Figus & Patrizio Lecca & Karen Turner & Peter McGregor, 2016. "Increased energy efficiency in Scottish households: trading-off economic benefits and energy rebound effects?," EcoMod2016 9454, EcoMod.
    10. Robinson, Sherman & Burfisher, Mary E. & Hinojosa-Ojeda, Raul & Thierfelder, Karen E., 1993. "Agricultural policies and migration in a U.S.-Mexico free trade area: A computable general equilibrium analysis," Journal of Policy Modeling, Elsevier, vol. 15(5-6), pages 673-701.
    11. Hertel, Thomas W., 1991. "Applied General Equilibrium Analysis of Agricultural Policies," Staff Papers 200396, Purdue University, Department of Agricultural Economics.
    12. Burfisher, Mary & Thierfelder, Karen & Hanson, Kenneth, 1992. "Data Base for a Computable General Equilibrium Model of the Agricultural Sectors of the United States and Mexico and Their Interactions," Staff Reports 278680, United States Department of Agriculture, Economic Research Service.
    13. Grant Allan & Christos Barkoumas & Andrew Ross & Ashank Sinha, 2020. "Success in sectoral export promotion and economic and environmental indicators: a multisectoral modelling analysis for the UK," Working Papers 2008, University of Strathclyde Business School, Department of Economics.
    14. Andrew G Ross & Grant Allan & Gioele Figus & Peter G McGregor & J Kim Swales & Karen Turner, 2018. "The economic impacts of UK fiscal policies and their spillover effects on the energy system," Working Papers 1820, University of Strathclyde Business School, Department of Economics.
    15. Burfisher, Mary E. & Robinson, Sherman & Theirfelder, Karen, 1997. "Migration, Prices, and Wages in a North American Free Trade Agreement," 1997 Occasional Paper Series No. 7 198199, International Association of Agricultural Economists.
    16. Gioele Figus & Peter McGregor & J Kim Swales & Karen Turner, 2018. "The importance of energy price stickiness and real wage inflexibility for the time paths of rebound effects," Working Papers 1804, University of Strathclyde Business School, Department of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhai, Fan, 2008. "Armington Meets Melitz: Introducing Firm Heterogeneity in a Global CGE Model of Trade," Journal of Economic Integration, Center for Economic Integration, Sejong University, vol. 23, pages 575-604.
    2. Uri, Noel D. & Boyd, Roy, 1998. "Aggregate impacts of the proposed reduction in the motor fuels excise tax in the United States1," Energy Economics, Elsevier, vol. 20(3), pages 309-323, June.
    3. Dixon, Peter B. & Rimmer, Maureen T., 2016. "Johansen's legacy to CGE modelling: Originator and guiding light for 50 years," Journal of Policy Modeling, Elsevier, vol. 38(3), pages 421-435.
    4. Hanson, Kenneth A. & Robinson, Sherman, 1989. "Data, Linkages, And Models: U.S. National Income And Product Accounts In The Framework Of A Social Accounting Matrix," Staff Reports 278155, United States Department of Agriculture, Economic Research Service.
    5. Cardenete, Manuel Alejandro & Delgado, M. Carmen, 2015. "A simulation of impact of withdrawal European funds on Andalusian economy using a dynamic CGE model: 2014–20," Economic Modelling, Elsevier, vol. 45(C), pages 83-92.
    6. Aradhyula, Satheesh Venkata, 1989. "Policy structure, output supply and input demand for US crops," ISU General Staff Papers 198901010800009909, Iowa State University, Department of Economics.
    7. Heyndrickx, Christophe & Ivanova, Olga & Vanherle, Kris, 2008. "On the construction and first empirical application of the new European Model for the Assessment of Environmental, Economic and Social effects of Sustainability Policies (EDIP)," Conference papers 330240, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    8. Pizer, William A. & Burtraw, Dallas & Harrington, Winston & Newell, Richard G. & Sanchirico, James N., 2005. "Modeling Economywide versus Sectoral Climate Policies Using Combined Aggregate-Sectoral Models," Discussion Papers 10502, Resources for the Future.
    9. Govinda R. Timilsina & Ram M. Shrestha, 2002. "General equilibrium analysis of economic and environmental effects of carbon tax in a developing country: case of Thailand," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 5(3), pages 179-211, September.
    10. Li Yingzhu & Su Bin & Shi Xunpeng, 2017. "Economic, Social, and Environmental Impacts of Energy Subsidies: A Case Study of Malaysia," Chapters, in: Han Phoumin & Shigeru Kimura (ed.), Institutional Policy and Economic Impacts of Energy Subsidies Removal in East Asia, chapter 2, pages 15-32, Economic Research Institute for ASEAN and East Asia (ERIA).
    11. Wiese, Arthur M., 1994. "Contructing Data for Use in Applied General Equilibrium Models from the U.S. National Income and Product Accounts: An ERS Data Base," Staff Reports 278749, United States Department of Agriculture, Economic Research Service.
    12. Keshab Bhattarai, 2007. "Welfare impacts of equal-yield tax reforms in the UK economy," Applied Economics, Taylor & Francis Journals, vol. 39(12), pages 1545-1563.
    13. Grubert, Harry & Mackie, James B. III, 2000. "Must Financial Services Be Taxed Under a Consumption Tax?," National Tax Journal, National Tax Association;National Tax Journal, vol. 53(1), pages 23-40, March.
    14. Alan G. Futerman & Luciano Villegas, 2022. "An Austrian critique of the neoclassical approach to indirect taxes," The Review of Austrian Economics, Springer;Society for the Development of Austrian Economics, vol. 35(4), pages 517-529, December.
    15. Céline DE QUATREBARBES & Luc SAVARD & Dorothée BOCCANFUSO, 2011. "Can the removal of VAT Exemptions support the Poor? The Case of Niger," Working Papers 201106, CERDI.
    16. Zabinski, Daniel & Selden, Thomas M. & Moeller, John F. & Banthin, Jessica S., 1999. "Medical savings accounts: microsimulation results from a model with adverse selection," Journal of Health Economics, Elsevier, vol. 18(2), pages 195-218, April.
    17. Holmoy, Erling & Vennemo, Haakon, 1995. "A general equilibrium assessment of a suggested reform in capital income taxation," Journal of Policy Modeling, Elsevier, vol. 17(6), pages 531-556, December.
    18. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    19. Ozana Nadoveza Tomislav Sekur Marija Beg, 2016. "General Equilibrium Effects of Lower Labor Tax Burden in Croatia," Zagreb International Review of Economics and Business, Faculty of Economics and Business, University of Zagreb, vol. 19(SCI), pages 1-13, December.
    20. Engel, Eduardo M. R. A. & Galetovic, Alexander & Raddatz, Claudio E., 1999. "Taxes and income distribution in Chile: some unpleasant redistributive arithmetic," Journal of Development Economics, Elsevier, vol. 59(1), pages 155-192, June.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:ecorec:v:66:y:1990:i:2:p:110-126. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/esausea.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.