Skip to main content

Enhancing the Links Between Income Sources, User Expenditures and Taxes in a CGE Database

Part of the Advances in Applied General Equilibrium Modeling book series (AAGEM)

Abstract

A Computable General Equilibrium (CGE) model that is relevant to policy makers requires a highly detailed, multi-dimensional database. Even a single-region model with many industries—100 is typical in policy-focused research—will require a database with several hundred thousand elements. The data is subject to many constraints: commodity and factor markets must clear and income, savings and expenditure must balance for every agent. It is therefore advisable that the data is arranged in a framework that clearly illustrates these requirements. A popular framework that meets these needs is the social accounting matrix (SAM) . This chapter describes an alternative framework, which readily fits in with the existing format of the standard input–output table.

Keywords

  • Input–output
  • Absorption
  • Income
  • CGE database
  • Social accounting matrix

This is a preview of subscription content, access via your institution.

Notes

  1. 1.

    https://stats.oecd.org/glossary/detail.asp?ID=1814.

References

  • Adams PD, Dixon JM, Horridge JM (2015) The Victoria University Regional Model (VURM): Technical documentation, Version 1.0. Centre of Policy Studies working paper G-254

    Google Scholar 

  • Adams P, Dixon J, Giesecke J, Horridge M (2010) MMRF: Monash Multi-Regional Forecasting Model: a dynamic multi-regional model of the Australian economy. CoPS working paper G-223

    Google Scholar 

  • Australian Bureau of Statistics (2016) Australian national accounts: input-output tables, 2013–14 (Cat. No. 5209.0) Commonwealth of Australia

    Google Scholar 

  • BEA (Bureau of Economic Analysis) (2016) Input–output accounts data. https://www.bea.gov/industry/io_annual.htm. Accessed 2 Feb 2017

  • Cao LY, Hosking A, Kouparitsas M, Mullaly D, Rimmer X, Shi Q, Wende S (2015) Understanding the economy-wide efficiency and incidence of major Australian taxes. Canberra: Treasury working paper 2015–2001

    Google Scholar 

  • Dixon JM (2006) The 2003 Mid Term Review of the common agricultural policy: a computable general equilibrium analysis for Ireland. Ph.D thesis, Trinity College Dublin

    Google Scholar 

  • Dixon P, Rimmer M (2002) Dynamic general equilibrium modelling for forecasting and policy: a practical guide and documentation of MONASH. North-Holland, Amsterdam

    Google Scholar 

  • Florida Revenue Estimating Conference (2011) Long-term revenue analysis FY 1970–1971 through FY 2020–2021, Office of Economic & Demographic Research, Tallahassee, vol. 27 (Fall) http://edr.state.fl.us/Content/conferences/longtermrevenue/archives/2011longtermrevenueanalysis.pdf

  • Freebairn J (2016) Taxation of Housing. Aust Econ Rev 49:307–316

    CrossRef  Google Scholar 

  • Horridge M (2012) The TERM model and its database. In: Wittwer G (ed) Economic modeling of water: the Australian CGE experience. Springer, Dordrecht, pp 13–36

    Google Scholar 

  • Horridge M (2014). ORANI-G: a generic single-country computable general equilibrium model. http://www.copsmodels.com/oranig.htm. Accessed 16 Dec 2016

  • Madden J (2017) Fiscal accounts in regional CGE modeling. In Wittwer G (ed) Multi-regional dynamic modeling of the U.S. economy. Springer, Dordrecht

    Google Scholar 

  • Pyatt G, Round J (eds) (1985) Social accounting matrices: a basis for planning. The World Bank, Washington D.C.

    Google Scholar 

Download references

Author information

Authors and Affiliations

Authors

Corresponding author

Correspondence to Janine Dixon .

Editor information

Editors and Affiliations

Rights and permissions

Reprints and Permissions

Copyright information

© 2017 Springer International Publishing AG

About this chapter

Cite this chapter

Dixon, J. (2017). Enhancing the Links Between Income Sources, User Expenditures and Taxes in a CGE Database. In: Wittwer, G. (eds) Multi-regional Dynamic General Equilibrium Modeling of the U.S. Economy. Advances in Applied General Equilibrium Modeling. Springer, Cham. https://doi.org/10.1007/978-3-319-58866-7_7

Download citation