EconPapers    
Economics at your fingertips  
 

Economies of Scale and Imperfect Competition in an Applied General Equilibrium Model of the Australian Economy

Kaludura Abayasiri-Silva and Mark Horridge ()

Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre

Abstract: Recently some researchers have suggested that economies of scale and imperfect competition play a major role in determining the effects of exogenous policy shocks. Thus they have emphasised the need to incorporate industrial organisation features into computable general equilibrium (CGE) models. However, our knowledge of this new paradigm is still in its infancy it is not yet clear how models of this type should be specified and to what extent their predictions are sensitive to the choice of specification. This paper describes a 23-sector CGE model of the Australian economy, based on ORANI and on Horridge (1987a and 1987b), which incorporates economies of scale and imperfect competition. The model is used to investigate whether adding these new features affects simulation results. We present results for three different types of non-competitive regime and compare these with results generated by a traditional (constant returns and perfect competition) version of the same model.

Keywords: Economies of scale; imperfect competition; applied general equilibrium models (search for similar items in EconPapers)
JEL-codes: C68 L11 L13 (search for similar items in EconPapers)
Date: 1996-03
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.copsmodels.com/ftp/workpapr/op-84.pdf Initial version, 1996-03 (application/pdf)
http://www.copsmodels.com/elecpapr/op-84.htm Local abstract: may link to additional material. (text/html)

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:cop:wpaper:op-84

Access Statistics for this paper

More papers in Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre Contact information at EDIRC.
Bibliographic data for series maintained by Mark Horridge ().

 
Page updated 2018-08-26
Handle: RePEc:cop:wpaper:op-84