Linking national and multi-regional computable general equilibrium (CGE) models: The effects of an increase in award wage rates in Australia

Peter Dixon, John Madden, Maureen Rimmer

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    Abstract

    Linking national and multi-regional computable general equilibrium (CGE) models: the effects of an increase in award wage rates in Australia, Regional Studies. Wages for 20 of Australian workers are set by awards, reviewed annually in a centralized legal process. For the 2005 review, the economy-wide and regional effects of increases in awards were modelled. A top-down approach in which results from a national model, MONASH, are fed into a multi-regional model, MMRF, was adopted. This enabled the authors to produce regional results while taking advantage of detailed labour-market specifications that were available only in MONASH. In using MMRF, a limitation of previous top-down methods was overcome - the inability to handle shocks affecting cost relativities between regions.
    Original languageEnglish
    Pages (from-to)1369 - 1385
    Number of pages17
    JournalRegional Studies
    Volume44
    Issue number10
    DOIs
    Publication statusPublished - 2010

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