A General Equilibrium Model of the World Wool Market

George Verikios

Research output: Working paperDiscussion paper

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Abstract

This paper presents the theoretical and numerical structure of WOOLGEM – a general equilibrium model of the world wool market which treats raw wool, wool textiles and wool garments as heterogeneous commodities. The model divides the world wool market into nine geographical regions and production in each region amongst eight major industrial sectors, seven of which represent different production stages for wool and one representing the nonwool economy. The wool industrial sectors cover the full spectrum of activities from the production of greasy wool to wool garments. We use WOOLGEM to quantify the effects on Australian wool producers’ welfare of industry levies used to fund research and development at different stages of the wool chain.
Original languageEnglish
PublisherUWA Business School
Publication statusPublished - 2006

Publication series

NameEconomics Discussion Papers
No.1
Volume6

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