CoPS/IMPACT Working Paper Number G-238

Title: DIAC-TERM: A Multi-regional Model of the Australian Economy With Migration Detail

Authors: Nhi Tran, Louise Roos and James Giesecke


DIAC-TERM is a dynamic multi-regional computable general equilibrium (CGE) model of Australia with an emphasis on labour market detail relevant to the analysis of Australia's Net Overseas Migration (NOM) program. Labour demand by industry, region and occupation is determined by the bottom-up multi-regional TERM model. Labour supply by region and occupation is based on a stock/flow dynamic describing disaggregated labour market groups. Between years, sub-populations, defined by age, region, skill, labour force status and visa status, transition between age and visa status categories. Within years, these same sub-populations and the new entrants to the labour market make utility-optimising offers to various labour market activities, such as working in a particular occupation, or leaving the labour force, or moving overseas. We illustrate the use of the model by analysing the consequences of three scenarios involving changes in the NOM program: a once-off increase in intake under the temporary skilled migration program, a permanent increase in the intake under the permanent skilled migration program, and a permanent increase in gross arrivals of non-New Zealand visa categories.

JEL classification: C68, D58, R13, F22.

Please cite the later published version in:
Tran, N.H., Roos, E.L., Giesecke, J.A. and Madden, J.R. (2016), 'Can regionally-targeted temporary visas be an effective policy instrument? -- a general equilibrium analysis'. In J. Poot and M. Roskruge (eds.) Population Change and Impacts in Asia and the Pacific. New Frontiers in Regional Science: Asia Perspectives, Springer.

Keywords: CGE modelling, dynamics, regional economics, migration, labour economics

Working Paper Number G-238 can be downloaded in PDF format.

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