IDEAS home Printed from https://ideas.repec.org/p/cop/wpaper/g-145.html
   My bibliography  Save this paper

Disaggregation of results from a detailed general equilibrium model of the US to the State level

Author

Listed:
  • Peter B. Dixon
  • Maureen T. Rimmer

Abstract

This paper describes the regional extension of USAGE-ITC, a 500-order dynamic CGE model of the US that we are developing in collaboration with the International Trade Commission. With the regional extension, USAGE-ITC can project the effects on employment and output by state of policy and other shocks to the economy. The paper describes the theory and data underlying the regional extension, and provides an illustrative application concerned with the effects of elimination of US restraints on imports. In CGE modeling there are two broad approaches to generating regional results: bottoms-up and tops-down. Our approach here is tops-down with emphasis on the estimation of inter-regional flows of goods and services. As explained in the paper, the tops-down approach is adequate for analysis of economy-wide shocks such as changes in Federal policies. Bottoms-up modeling will be required for analysis of shocks in which the essence is a change in relative costs across regions.

Suggested Citation

  • Peter B. Dixon & Maureen T. Rimmer, 2004. "Disaggregation of results from a detailed general equilibrium model of the US to the State level," Centre of Policy Studies/IMPACT Centre Working Papers g-145, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-145
    as

    Download full text from publisher

    File URL: https://www.copsmodels.com/ftp/workpapr/g-145.pdf
    File Function: Initial version, 2004-04
    Download Restriction: no
    File URL: https://www.copsmodels.com/elecpapr/g-145.htm
    File Function: Local abstract: may link to additional material.
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Dixon, P.B. & Parmenter, B.R. & Sutton, J., 1978. "Spatial Disaggregation of Orani Results: A Preliminary Analysis of the Impact of Protection at the State Level," Economic Analysis and Policy, Elsevier, vol. 8(1), pages 35-86.
    2. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    3. Pearson, K. R., 1988. "Automating the computation of solutions of large economic models," Economic Modelling, Elsevier, vol. 5(4), pages 385-395, October.
    4. Naqvi, Farzana & Peter, Matthew W, 1996. "A Multiregional, Multisectoral Model of the Australian Economy with an Illustrative Application," Australian Economic Papers, Wiley Blackwell, vol. 35(66), pages 94-113, June.
    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. Peter B. Dixon & Maureen T. Rimmer & Marinos E. Tsigas, 2004. "Macro, industry and state effects in the U.S. of removing major tariffs and quotas," Centre of Policy Studies/IMPACT Centre Working Papers g-146, Victoria University, Centre of Policy Studies/IMPACT Centre.
    2. Faria, Weslem & Haddad, Eduardo, 2011. "Estimação das Elasticidades de Substituição do Comércio Regional do Brasil," TD NEREUS 1-2011, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    3. Fernando Salgueiro Perobelli & Eduardo Amaral Haddad & Jaime Bonet Moron & Geoffrey Hewings, 2010. "Structural Interdependence Among Colombian Departments," Economic Systems Research, Taylor & Francis Journals, vol. 22(3), pages 279-300.
    4. R. Azzoni, Carlos & A. Haddad, Eduardo & P. Domingues, Edson & Perobelli, Fernando, 2005. "Using interregional Multipliers to Compute the Efficiency-equity Trade-off at the Sub-national level: an Application to a Brazilian State," TD NEREUS 11-2005, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    5. Eduardo Haddad & Juan Manuel Samaniego & Alexandre Porsse & Santiago Ochoa & Luiz Gustavo Souza, 2011. "Interregional Interdependence among Ecuadorian Provinces: An Input-Output Analysis," ERSA conference papers ersa11p836, European Regional Science Association.
    6. Amaral Haddad, Eduardo & Cotarelli, Natália & Simonato, Thiago & Vale, Vinicius & Coelho Visentin, Jaqueline, 2018. "Estimation of NUTS2 Interregional Input-Output Systems for Greece, 2010 and 2013," TD NEREUS 3-2018, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    7. Eduardo Haddad & Vasco Silva & Alexandre Porsse & Tomaz Dentinho, 2015. "Multipliers in an Island Economy: The Case of the Azores," World Scientific Book Chapters, in: Amitrajeet A Batabyal & Peter Nijkamp (ed.), THE REGION AND TRADE New Analytical Directions, chapter 8, pages 205-226, World Scientific Publishing Co. Pte. Ltd..
    8. Lucas Hahn de Castro, 2016. "Encadenamientos regionales en Colombia 2004-2012," Revista de Economía del Rosario, Universidad del Rosario, vol. 19(1), pages 29-56, June.
    9. Eduardo Haddad & Weslem Faria & Luis Armando Galvis-Aponte & Lucas Wilfried Hahn-De-Castro, 2016. "Matriz insumo-producto interregional para Colombia, 2012," Documentos de Trabajo Sobre Economía Regional y Urbana 15140, Banco de la República, Economía Regional.
    10. Eduardo A. Haddad & Inácio F. Araújo, 2021. "The internal geography of services value‐added in exports: A Latin American perspective," Papers in Regional Science, Wiley Blackwell, vol. 100(3), pages 713-744, June.
    11. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
    12. Haddad, Eduardo, 2012. "Progress on the Development of an Interregional Computable General Equilibrium Model for Lebanon: The Input-Output System," TD NEREUS 1-2012, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    13. Eduardo Amaral Haddad & Weslem Rodrigues Faria & Luis Armando Galvis-Aponte & Lucas Wilfried Hahn-De-Castro, 2016. "Interregional Input-Output Matrix for Colombia, 2012," Borradores de Economia 14203, Banco de la Republica.
    14. Haddad, Eduardo A. & Garcia Samaniego, Juan Manuel & Porsse, Alexandre A. & Ochoa Jimenez, Diego Alejandro & Ochoa Moreno, Wilman Santiago & Souza, Luiz Gustavo Antonio, 2011. "Interregional input-ouptut system for Ecuador, 2007: methodology and results," MPRA Paper 32927, University Library of Munich, Germany.
    15. Amaral Haddad, Eduardo & Fernandes de Araújo, Inácio & Ibarraran, María Eugenia & Boyd, Roy & Elizondo, Alejandra & Liedo-Orozco, Pedro & Menchero-Garcia, Mariana & Belausteguigoitia, Juan Carlos, 2019. "Interregional Input-Output System for Mexico, 2013," TD NEREUS 7-2019, Núcleo de Economia Regional e Urbana da Universidade de São Paulo (NEREUS).
    16. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 379-475, Elsevier.
    17. Pham Van Ha & Hoa Thi Minh Nguyen & Tom Kompas & Tuong Nhu Che & Bui Trinh, 2015. "Rice Production, Trade and the Poor: Regional Effects of Rice Export Policy on Households in Vietnam," Journal of Agricultural Economics, Wiley Blackwell, vol. 66(2), pages 280-307, June.
    18. Hasegawa, Marcos & Guilhoto, Joaquim José Martins, 2006. "Investimento e produtividade dos fatores primários: uma análise de equilíbrio geral aplicado [Investment and productivity of primary factors: a general applied general equilibrium analysis]," MPRA Paper 54555, University Library of Munich, Germany.
    19. Peter B. Dixon & Maureen T. Rimmer & Marinos E. Tsigas, 2007. "Regionalising results from a detailed CGE model: Macro, industry and state effects in the U.S. of removing major tariffs and quotas," Papers in Regional Science, Wiley Blackwell, vol. 86(1), pages 31-55, March.
    20. Gabela, Julio Gustavo Fournier, 2020. "On the accuracy of gravity-RAS approaches used for inter-regional trade estimation: evidence using the 2005 inter-regional input–output table of Japan," EconStor Open Access Articles and Book Chapters, ZBW - Leibniz Information Centre for Economics, vol. 32(4), pages 521-539.
    21. J.A. Giesecke & P.B. Dixon & M.T. Rimmer & N.H. Tran & D. Pratap, 2020. "The Effects on the Indian Economy of an Expansion in Financial Capital Supply," Centre of Policy Studies/IMPACT Centre Working Papers g-308, Victoria University, Centre of Policy Studies/IMPACT Centre.

    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. Elbehri, Aziz, 2004. "MFA Quota Removal and Global Textile and Cotton Trade: Estimating Quota Trade Restrictiveness and Quantifying Post-MFA Trade Patterns," Conference papers 331295, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Peter B. Dixon & Maureen T. Rimmer, 2003. "State-level Dynamic CGE Modeling for Forecasting and Policy Analysis," Centre of Policy Studies/IMPACT Centre Working Papers ip-82, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. Peter B. Dixon, 2006. "Evidence-based Trade Policy Decision Making in Australia and the Development of Computable General Equilibrium Modelling," Centre of Policy Studies/IMPACT Centre Working Papers g-163, Victoria University, Centre of Policy Studies/IMPACT Centre.
    4. Glyn Wittwer & Mark Horridge, 2010. "Bringing Regional Detail to a CGE Model using Census Data," Spatial Economic Analysis, Taylor & Francis Journals, vol. 5(2), pages 229-255.
    5. Horridge, Mark & Madden, John & Wittwer, Glyn, 2005. "The impact of the 2002-2003 drought on Australia," Journal of Policy Modeling, Elsevier, vol. 27(3), pages 285-308, April.
    6. 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.
    7. Peter B. Dixon & Maureen T. Rimmer, 2003. "The US economy from 1992 to 1998: historical and decomposition simulations with the USAGE model," Centre of Policy Studies/IMPACT Centre Working Papers g-143, Victoria University, Centre of Policy Studies/IMPACT Centre.
    8. Mark Horridge & Glyn Wittwer, 2006. "The Impacts of Higher Energy Prices on Indonesia’s and West Java’s Economies using INDOTERM, a Multiregional Model of Indonesia," Working Papers in Economics and Development Studies (WoPEDS) 200607, Department of Economics, Padjadjaran University, revised Aug 2006.
    9. Horridge, Mark & Madden, John & Wittwer, Glyn, 2003. "Using a Highly Disaggregated Multi-Regional Single-Country Model to Analyse the Impacts of the 2002-03 Drought on Australia," Conference papers 331074, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    10. Dixon, Peter B. & Koopman, Robert B. & Rimmer, Maureen T., 2013. "The MONASH Style of Computable General Equilibrium Modeling: A Framework for Practical Policy Analysis," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 23-103, Elsevier.
    11. Kym Anderson, 2020. "Trade Protectionism In Australia: Its Growth And Dismantling," Journal of Economic Surveys, Wiley Blackwell, vol. 34(5), pages 1044-1067, December.
    12. Giesecke, James A. & Madden, John R., 2013. "Regional Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 379-475, Elsevier.
    13. James A. Giesecke & John R. Madden, 2013. "Evidence-based regional economic policy analysis: the role of CGE modelling," Cambridge Journal of Regions, Economy and Society, Cambridge Political Economy Society, vol. 6(2), pages 285-301.
    14. Prema-chandra Athukorala & Peter B. Dixon & Maureen T. Rimmer, 2017. "Global Supply Chains: towards a CGE analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-281, Victoria University, Centre of Policy Studies/IMPACT Centre.
    15. Parris, Brett, 2005. "Economic Network Structures, Growth and Poverty," Conference papers 331415, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    16. Y. Qiang, 1999. "CGE Modelling and Australian Economics," Economics Discussion / Working Papers 99-04, The University of Western Australia, Department of Economics.
    17. Peter Dixon & John Madden & Maureen Rimmer, 2010. "Linking National and Multi-regional Computable General Equilibrium (CGE) Models: The Effects of an Increase in Award Wage Rates in Australia," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1369-1385.
    18. Y. Qiang, 1999. "An Economy-wide Model of Western Australia: The theoretical structure," Economics Discussion / Working Papers 99-06, The University of Western Australia, Department of Economics.
    19. Simon J.Evenett & Mia Mikic & Ravi Ratnayake (ed.), 2011. "Trade-led growth: A sound strategy for Asia," ARTNeT Books and Research Reports, United Nations Economic and Social Commission for Asia and the Pacific (ESCAP), number brr10.
    20. Henseler, Martin & Piot-Lepetit, Isabelle & Ferrari, Emanuele & Mellado, Aida Gonzalez & Banse, Martin & Grethe, Harald & Parisi, Claudia & Hélaine, Sophie, 2013. "On the asynchronous approvals of GM crops: Potential market impacts of a trade disruption of EU soy imports," Food Policy, Elsevier, vol. 41(C), pages 166-176.

    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • R1 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics

    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:cop:wpaper:g-145. 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: Mark Horridge (email available below). General contact details of provider: https://edirc.repec.org/data/cpmonau.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.