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A Harris-style miniature version of ORANI

Author

Listed:
  • Peter Cory
  • Mark Horridge

Abstract

A small version of ORANI is constructed, incorporating economies of scale and imperfect competition. Economic mechanisms are borrowed from a model constructed by Richard Harris, and described in his 1984 book "Trade, Industrial Policy and Canadian Manufacturing". The miniature Harris-like model is used to determine whether Harris' conclusions might carry over to Australia, and to see which of his several assumptions are responsible for his more striking results. We find that import-parity pricing is responsible for most of the 'action', while Lerner pricing (based on perceived demand elasticities) yields results similar to the conventional CRTS model. Please note: The PDF download of this fairly old paper is an optical scan of indifferent, but legible, quality

Suggested Citation

  • Peter Cory & Mark Horridge, 1985. "A Harris-style miniature version of ORANI," Centre of Policy Studies/IMPACT Centre Working Papers op-54, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:op-54
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    File URL: https://www.copsmodels.com/ftp/workpapr/op-54.pdf
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    Citations

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    Cited by:

    1. Minor, Peter J., 2010. "Time as a Barrier to Trade: A GTAP Database of ad valorem Trade Time Costs," Conference papers 331960, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    2. Kaludura Abayasiri-Silva & Mark Horridge, 1998. "Economies of Scale and Imperfect Competition in an Applied General Equilibrium Model of the Australian Economy," Palgrave Macmillan Books, in: Kenneth J. Arrow & Yew-Kwang Ng & Xiaokai Yang (ed.), Increasing Returns and Economic Analysis, chapter 14, pages 307-334, Palgrave Macmillan.
    3. Naranpanawa, Athula & Arora, Rashmi, 2014. "Does Trade Liberalization Promote Regional Disparities? Evidence from a Multiregional CGE Model of India," World Development, Elsevier, vol. 64(C), pages 339-349.
    4. Betarelli, Admir Antonio & Domingues, Edson Paulo & Hewings, Geoffrey John Dennis, 2020. "Transport policy, rail freight sector and market structure: The economic effects in Brazil," Transportation Research Part A: Policy and Practice, Elsevier, vol. 135(C), pages 1-23.
    5. P. J. Forsyth, 1985. "Trade and Industry Policy," Australian Economic Review, The University of Melbourne, Melbourne Institute of Applied Economic and Social Research, vol. 18(3), pages 70-81, September.
    6. J. David Richardson, 1989. "Empirical Research on Trade Liberalization With Imperfect Competition: A Survey," NBER Working Papers 2883, National Bureau of Economic Research, Inc.

    More about this item

    Keywords

    Economies of scale; imperfect competition; applied general equilibrium models;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
    • L13 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Oligopoly and Other Imperfect Markets

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