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Linking A Dynamic CGE Model And A Microsimulation Model: Climate Change Mitigation Policies And Income Distribution In Australia

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Executive Summary

This paper extends the 'Top-down' framework, introduced by Robilliard et al. (2001), to link a Computable General Equilibrium (CGE) model to a micro simulation model. The proposed approach allows the linking of a micro simulation model to a dynamic, and not simply a static, CGE model by enabling the micro simulation model to reproduce the predicted long-term changes in the base population. The approach relies on altering the sample weights in order to reproduce population projections and the changes in employment as estimated by the CGE model.

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