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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

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    File URL: https://ecompapers.biz.uwa.edu.au/paper/PDF%20of%20Discussion%20Papers/2021/DP%2021.14_Verikios%20Hanslow%20Mariano%20and%20Clements.pdf
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    References listed on IDEAS

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    Cited by:

    1. Marc Jim M. Mariano & George Verikios & Kenneth W. Clements, 2023. "Are Input-Output Coefficients Really Fixed?," Economics Discussion / Working Papers 23-06, The University of Western Australia, Department of Economics.
    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.

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