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Evidence-based Trade Policy Decision Making in Australia and the Development of Computable General Equilibrium Modeling

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  • Dixon, Peter B.

Abstract

This paper explains why evidence-based trade policy decision making is heavily reliant on results generated by CGE models and why the development and application of these modeling has been particularly active in Australia. The paper provides a short history of CGE modeling and describes the impetus to the field provided by two factors: (a) the failures of less theoretically formal approaches; and (b) the recognition of the ability of CGE modeling to handle policy-relevant detail. The paper argues that CGE modeling flourished in Australia because Australia had the right issue, the right institutions and the right model.

Suggested Citation

  • Dixon, Peter B., 2007. "Evidence-based Trade Policy Decision Making in Australia and the Development of Computable General Equilibrium Modeling," Conference papers 331643, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331643
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    File URL: https://ageconsearch.umn.edu/record/331643/files/3395.pdf
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    References listed on IDEAS

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    1. Terry Roe & Agapi Somwaru & Xinshen Diao, 2006. "Globalization: Welfare Distribution and Costs among Developed and Developing Countries ," Review of Agricultural Economics, Agricultural and Applied Economics Association, vol. 28(3), pages 399-407.
    2. Qaim, Matin & De Janvry, Alain, 2005. "Bt cotton and pesticide use in Argentina: economic and environmental effects," Environment and Development Economics, Cambridge University Press, vol. 10(2), pages 179-200, May.
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    4. Xinshen Diao & Terry Roe & Agapi Somwaru, 2002. "Developing Country Interests in Agricultural Reforms under the World Trade Organization," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 84(3), pages 782-790.
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