Using a highly disaggregated multi-regional single-country model to analyse the impacts of the 2002-03 drought on AustraliaJonathan Mark Horridge (), John Robert Madden () and Glyn Wittwer () Centre of Policy Studies/IMPACT Centre Working Papers from Monash University, Centre of Policy Studies/IMPACT Centre Abstract: TERM (The Enormous Regional Model) is a "bottom-up" CGE model of Australia which treats each region as a separate economy. TERM was created specifically to deal with highly disag-gregated regional data while providing a quick solution to simulations. This makes it a useful tool for examining the regional impacts of shocks that may be region-specific. We include some details of how we prepared the TERM database, using a national input-output table, together with regional data showing output (for agriculture) and employment (in other sectors) for each of 144 sectors and 57 regions [the Australian statistical divisions]. Using a 38-sector, 45-region aggregation of the model, we simulate the short-run effects of the Australian drought of 2002-03, which was the most widespread for 20 years. The effects on some statistical divisions are extreme, with income losses of up to 20 per cent. Despite the relatively small share of agriculture in Australian GDP, the drought reduces GDP by 1.6 per cent, and contributes to a decline in unemployment and to a worsening of the balance of trade. JEL-codes: D58 R13 N57 O13 (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:cop:wpaper:g-141 Access Statistics for this paper More papers in Centre of Policy Studies/IMPACT Centre Working Papers from Monash University, Centre of Policy Studies/IMPACT Centre |
Is your work missing from RePEc? Here is how to contribute.
Questions or problems? Check the EconPapers FAQ or send mail to .
EconPapers is hosted by the
Swedish Business School at Örebro University.