Linking a Microsimulation Model to a Dynamic CGE Model: Climate Change Mitigation Policies and Income Distribution in Australia
H Buddelmeyer, N Herault, GR Kalb, M Van Zijll De Jong
International Journal of Microsimulation | International Microsimulation Association | Published : 2012
This paper extends the ‘top-down’ framework developed by Robilliard et al. (2001) to link a computable general equilibrium (CGE) model to a microsimulation (MS) model. The proposed approach allows for the linking of an MS model to a dynamic (rather than static) CGE model. The approach relies on altering the sample weights in order to reproduce long-term population projections and changes in employment as estimated by the CGE model. The approach is applied to assess the effects of climatechange mitigation policies in Australia from 2005 to 2030 at five-yearly intervals.