Author: James A. Giesecke
This paper details the construction of a large-scale computable general equilibrium (CGE) model for a single U.S. region. The model contains detailed treatment of margins and taxes, features not typically given prominence in U.S. regional CGE models. The starting point for the core of the CGE model's data base is information from IMPLAN, producers of regional I/O data at the U.S. county and state levels. IMPLAN's I/O tables, however, are in producer prices with aggregated treatment of margins and taxes. The methods for reconfiguring the I/O data into basic price flows with direct allocation of imports and a disaggregated treatment of taxes and margins are described. The method is applied to construction of a Los Angeles County model. An illustrative simulation of a productivity improvement in the Los Angeles County economy is then discussed.
JEL classification: C68, R13, R15.
Please cite the later published version in:
Spatial Economic Analysis, 2011, Vol. 6(3), pp. 331-350.
Keywords: CGE, IMPLAN.
Working Paper Number G-187 can be downloaded in PDF format.
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