Forecasting the Economic impact of an industrial stoppage using a dynamic, computable general equilibrium model

Glyn Wittwer and Peter Dixon

Australian Journal of Labour Economics (AJLE), 2004, vol. 7, issue 1, 39-51

Abstract: This paper demonstrates that dynamic computable general equilibrium (CGE) simulations can provide estimates of the economy-wide effects of industrial stoppages. Such estimates could be used in broad discussions of the contribution to economic welfare of improved industrial relations. They could also be used in narrowly focussed discussions, e.g. in the Australian Industrial Relations Commission in a determination under the Workplace Relations Act of the economic damage associated with a specific stoppage. An attractive feature of CGE simulation is that it can capture relevant details of particular circumstances. We illustrate this with a CGE analysis of the effects of a hypothetical stoppage in the Victorian non-residential construction industry. As explained in the paper, our simulation results reflect explicit assumptions about the nature of the industry in which the stoppage occurs, the wage adjustment process and the state of the business cycle.

Keywords: Computable General Equilibrium Models Dispute Resolution; Strikes, Arbitration, and Mediation (collective bargaining) Labor-Management Relations, Trade Unions, and Collective Bargaining; Public Policy Macroeconomics; Consumption, Saving, Production, Employment, and Investment; Forecasting and Simulation (search for similar items in EconPapers)
JEL-codes: C68 E27 J52 J58 (search for similar items in EconPapers)
Date: 2004
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://ftprepec.drivehq.com/ozl/journl/downloads/AJLE071dixon.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ozl:journl:v:7:y:2004:i:1:p:39-51

Access Statistics for this article

More articles in Australian Journal of Labour Economics (AJLE) from Bankwest Curtin Economics Centre (BCEC), Curtin Business School Contact information at EDIRC.
Bibliographic data for series maintained by Sandie Rawnsley ().