A general equilibrium model of Papua New Guinea
Abstract
This paper outlines the most recent version of a computable general equilibrium model of Papua New Guinea operated by the National Centre for Development Studies. The purpose is to give a complete overview of the structure of the model. In general the model follows the ORANI framework, but with crime being so prevalent in Papua New Guinea, particular attention is paid to its adaptation in the mode. An important feature of this model is its ability to derive an equivalent variation measure of the change in welfare, disaggregated across various components. Part I of the paper discusses the model’s variables, Part II contains definitions and equations.