IDEAS home Printed from https://ideas.repec.org/p/uwa/wpaper/21-14.html
   My bibliography  Save this paper

Understanding the Australian economy: a computable general equilibrium model with updated data and parameters

Author

Listed:
  • George Verikios

    (KPMG Economics and Department of Accounting, Finance and Economics, Griffith University)

  • Kevin Hanslow

    (KPMG Economics)

  • Marc Jim Mariano

    (KPMG Economics)

Abstract

This document describes the theory, data and parameters of a multi-sectoral model of the Australian economy. The model belongs to the computable general equilibrium (CGE) class of models; see Dixon and Jorgenson (2012) and Francois and Reinert (1997) for a broad survey of CGE models. The theory draws together special treatments for particular sectors of the Australian economy. These include the treatment of energy goods, tourism, public sector accounts and debt accumulation, and private sector debt and credit accumulation. The properties of the model are also consistent with the properties of dynamic macroeconomic models whereby the economy begins in a steady-state and moves along a balanced growth path to a new steady-state a experiencing a perturbation. Another novel feature of the model is the use of the latest data but also recently-estimated parameters in the area of import-domestic substitution and household demand.

Suggested Citation

  • George Verikios & Kevin Hanslow & Marc Jim Mariano, 2021. "Understanding the Australian economy: a computable general equilibrium model with updated data and parameters," Economics Discussion / Working Papers 21-14, The University of Western Australia, Department of Economics.
    • Handle: RePEc:uwa:wpaper:21-14
    Note: MD5 = 1f1fbd84ccb7cba82032d603961ab461
    as

    Download full text from publisher

    File URL: https://ecompapers.biz.uwa.edu.au/paper/PDF%20of%20Discussion%20Papers/2021/DP%2021.14_Verikios%20Hanslow%20Mariano%20and%20Clements.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Enghin Atalay, 2017. "How Important Are Sectoral Shocks?," American Economic Journal: Macroeconomics, American Economic Association, vol. 9(4), pages 254-280, October.
    2. Vincent, David P & Dixon, Peter B & Powell, Alan A, 1980. "The Estimation of Supply Response in Australian Agrucilture: The CRESH/CRETH Production System," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 21(1), pages 221-242, February.
    3. Peter B. Dixon & Dale Jorgenson (ed.), 2012. "Handbook of Computable General Equilibrium Modeling," Handbook of Computable General Equilibrium Modeling, Elsevier, edition 1, volume 1, number 1.
    4. Robert S. Chirinko, 2008. "ó: The Long And Short Of It," CESifo Working Paper Series 2234, CESifo.
    5. Pollak, Robert A & Wales, Terrence J, 1969. "Estimation of the Linear Expenditure System," Econometrica, Econometric Society, vol. 37(4), pages 611-628, October.
    6. Kenneth W Clements & Jiawei Si, 2018. "Engel’s Law, Diet Diversity, and the Quality of Food Consumption," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 100(1), pages 1-22.
    7. Sandra Dandie & Joseph Mercante, 2007. "Australian labour supply elasticities: Comparison and critical review," Treasury Working Papers 2007-04, The Treasury, Australian Government, revised Oct 2007.
    8. Chirinko, Robert S., 2008. "[sigma]: The long and short of it," Journal of Macroeconomics, Elsevier, vol. 30(2), pages 671-686, June.
    9. Pollak, Robert A & Wales, Terence J, 1978. "Estimation of Complete Demand Systems from Household Budget Data: The Linear and Quadratic Expenditure Systems," American Economic Review, American Economic Association, vol. 68(3), pages 348-359, June.
    10. Lluch, Constantino, 1973. "The extended linear expenditure system," European Economic Review, Elsevier, vol. 4(1), pages 21-32, April.
    11. R. C. Geary, 1950. "A Note on "A Constant-Utility Index of the Cost of Living"," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 18(1), pages 65-66.
    12. Betancourt, Roger R, 1971. "The Estimation of Price Elasticities from Cross-Section Data under Additive Preferences," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 12(2), pages 283-292, June.
    13. Clements,Kenneth W. & Zhao,Xueyan, 2014. "Economics and Marijuana," Cambridge Books, Cambridge University Press, number 9781107421479, January.
    14. Howard Howe, 1977. "Cross-Section Application of Linear Expenditure Systems: Responses to Sociodemographic Effects," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 59(1), pages 141-148.
    15. Hanoch, Giora, 1971. "CRESH Production Functions," Econometrica, Econometric Society, vol. 39(5), pages 695-712, September.
    16. Howe, Howard, 1975. "Development of the extended linear expenditure system from simple saving assumptions," European Economic Review, Elsevier, vol. 6(3), pages 305-310, July.
    17. Kenneth W. Clements & Marc Jim M. Mariano & George Verikios, 2020. "Estimating The Linear Expenditure System With Cross-Sectional Data," Economics Discussion / Working Papers 20-18, The University of Western Australia, Department of Economics.
    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. Marc Jim M. Mariano & George Verikios & Kenneth W. Clements, 2025. "Are input-output coefficients really fixed?," Applied Economics, Taylor & Francis Journals, vol. 57(7), pages 753-776, February.
    2. Clements, Kenneth W. & Mariano, Marc Jim M. & Verikios, George & Wong, Berwyn, 2022. "How elastic is alcohol consumption?," Economic Analysis and Policy, Elsevier, vol. 76(C), pages 568-581.

    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. Clements, Kenneth & Mariano, Marc Jim & Verikios, George, 2022. "Expenditure patterns, heterogeneity, and long-term structural change," Economic Modelling, Elsevier, vol. 113(C).
    2. Marc Jim M. Mariano & George Verikios & Kenneth W. Clements, 2025. "Are input-output coefficients really fixed?," Applied Economics, Taylor & Francis Journals, vol. 57(7), pages 753-776, February.
    3. Kenneth W. Clements & Marc Jim M. Mariano & George Verikios, 2020. "Estimating The Linear Expenditure System With Cross-Sectional Data," Economics Discussion / Working Papers 20-18, The University of Western Australia, Department of Economics.
    4. Andres Mauricio Gomez Sanchez & Claudia Liceth Fajardo Hoyos & Juliana Isabel Sarmiento Castillo, 2016. "Líneas de Pobreza en el Cauca: Una medición subvalorada," Revista de Economía del Caribe 14792, Universidad del Norte.
    5. repec:spo:wpmain:info:hdl:2441/vbu6kd1s68o6r34k5bcm3iopv is not listed on IDEAS
    6. repec:hal:spmain:info:hdl:2441/1ej8deo44v9t38bpf73n3rflp8 is not listed on IDEAS
    7. Clément Bellet, 2017. "Essays on inequality, social preferences and consumer behavior [Inégalités, préférences sociales et comportement du consommateur]," SciencePo Working papers Main tel-03455045, HAL.
    8. Kohn Karsten & Missong Martin, 2003. "Estimation of Quadratic Expenditure Systems Using German Household Budget Data / Schätzung Quadratischer Ausgabensysteme anhand der Daten der Einkommens- und Verbrauchsstichprobe," Journal of Economics and Statistics (Jahrbuecher fuer Nationaloekonomie und Statistik), De Gruyter, vol. 223(4), pages 422-448, August.
    9. Clément Bellet, 2017. "Essays on inequality, social preferences and consumer behavior [Inégalités, préférences sociales et comportement du consommateur]," SciencePo Working papers tel-03455045, HAL.
    10. Verikios, George & Patron, Jodie & Gharibnavaz, Reza, 2017. "Decomposing the Marginal Excess Burden of Australia’s Goods and Services Tax," MPRA Paper 77850, University Library of Munich, Germany.
    11. repec:hal:spmain:info:hdl:2441/vbu6kd1s68o6r34k5bcm3iopv is not listed on IDEAS
    12. van der Mensbrugghe, Dominique, 2013. "Modeling the Global Economy – Forward-Looking Scenarios for Agriculture," 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 933-994, Elsevier.
    13. Conniffe, Denis & Keogh, Gary, 1988. "Equivalence Scales and Costs of Children," Research Series, Economic and Social Research Institute (ESRI), number GRS142.
    14. repec:spo:wpmain:info:hdl:2441/1ej8deo44v9t38bpf73n3rflp8 is not listed on IDEAS
    15. Kevin J. Lansing, 2011. "Asset pricing with concentrated ownership of capital," Working Paper 2011/18, Norges Bank.
    16. Lee, Hiro & van der Mensbrugghe, Dominique, 2005. "The impact of the US safeguard measures on Northeast Asian producers: General equilibrium assessments," MPRA Paper 82288, University Library of Munich, Germany.
    17. Pavel Ciaian & Andrey Ivanov & d'Artis Kancs, 2019. "Universal basic income: A viable policy alternative?," The World Economy, Wiley Blackwell, vol. 42(10), pages 2975-3000, October.
    18. Ezra Oberfield & Devesh Raval, 2021. "Micro Data and Macro Technology," Econometrica, Econometric Society, vol. 89(2), pages 703-732, March.
    19. Daron Acemoglu & James A. Robinson, 2015. "The Rise and Decline of General Laws of Capitalism," Journal of Economic Perspectives, American Economic Association, vol. 29(1), pages 3-28, Winter.
    20. Christoph Görtz & Christopher Gunn & Thomas Lubik, 2018. "Taking Stock of TFP News Shocks: The Inventory Comovement Puzzle," Carleton Economic Papers 18-05, Carleton University, Department of Economics, revised 14 Jul 2018.
    21. Bopape, Lesiba, 2006. "Heterogeneity of Household Food Expenditure Patterns in South Africa," 2006 Annual meeting, July 23-26, Long Beach, CA 21300, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    22. Christoph Görtz & Christopher Gunn & Thomas Lubik, "undated". "What Drives Inventory Accumulation? News on Rates of Return and Marginal Costs," Carleton Economic Papers 19-09, Carleton University, Department of Economics.
    23. Fernando del Río & Francisco‐Xavier Lores, 2023. "Accounting for the role of investment frictions in recessions," Economica, London School of Economics and Political Science, vol. 90(360), pages 1089-1118, October.
    24. Li, Lanlan & Luo, Xuan & Zhou, Kaile & Xu, Tingting, 2018. "Evaluation of increasing block pricing for households' natural gas: A case study of Beijing, China," Energy, Elsevier, vol. 157(C), pages 162-172.

    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:uwa:wpaper:21-14. 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: Sam Tang (email available below). General contact details of provider: https://edirc.repec.org/data/deuwaau.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.