The course focuses on a typical single-region applied general equilibrium model: the ORANI-G model of the Australian economy. Variants of the ORANI model of the Australian economy have been used extensively for policy analysis in Australia for more than two decades. ORANI-G, a generic version of ORANI, has been used to model the economies of more than 30 countries around the world.
The first CGE models were developed in the 1970's with the aim of evaluating economic policies with respect to their macroeconomic effects. The strength of this type of simulation model rests upon its microeconomic foundation and the consideration of interdependencies across all markets within an economy. Both efficiency and distributional effects of polices can be quantified. CGE simulations not only measure direct policy effects surfacing in a specific market, but also indirect feedback effects which are of particular importance if policies alter relative prices. An energy tax, for example, will not only reduce energy demand, but will indirectly affect other markets through input-output linkages. Furthermore, labor demand and supply, household consumption, foreign trade (trough changes in the terms-of-trade) and many other important elements within the economic system will be affected as well.
More information about the course can be found here: https://www.vu.edu.au/about-vu/news-events/events/practical-ge-modelling-course-vienna.
