Dixon, Peter, Madden, John R and Rimmer, Maureen T (2009) Linking National and Multi-regional Computable General Equilibrium (CGE) Models: The Effects of an Increase in Award Wage Rates in Australia. Regional Studies, 44 (10). pp. 1369-1385. ISSN 0034-3404 (print) 1360-0591 (online)

Abstract

Dixon P. B., Madden J. R. and Rimmer M. T. 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.

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