CHINAGEM—A Dynamic General Equilibrium Model of China: Theory, Data and Applications

This book contains detailed documentation of the CHINAGEM model - a large-scale dynamic computable general equilibrium (CGE) model of China and its applications. Specifically, this book documents the theory and database behind the CHINAGEM model. This book explores the closure development for the four simulation modes of the model including historical, decomposition, forecast and policy simulations, the detailed explanation of how to analyze simulation results, and the extensions of CHINAGEM and their applications. These extensions include several innovative modules and case studies as examples of the application of CHINAGEM. 

This book provides an entry point for CGE modellers to develop their analytical skills. This book can also be used as a platform for research institutes to develop CGE models suitable for their research portfolio. The module developments included in this book are designed to capture the specific features of the Chinese economy. The applications of these modules chosen in the book cover hot policy issues in China, and the simulation results have valuable policy implications. This book identifies that the CHINAGEM model itself and all the extensions can be used for analysing many new topics and policy issues such as the effects of the USA–China trade war, the effects of Made in China 2025 Plan as well as China’s commitment to the carbon neutrality before 2060 and its economic implications.

Dr. Xiujian Peng is a senior research fellow at the Centre of Policy Studies (CoPS), Victoria University, Australia. Previous appointments include a senior research associate at the University of Adelaide and a senior lecturer at the Institute of Population Research, Renmin University of China. In her doctoral research at Monash University, she applied CGE modelling to simulate the macroeconomic consequences of population ageing and related policy choices in China. The thesis was awarded the prestigious Mollie Holman Doctoral Medal in 2005. Dr. Peng has published widely in international peer-reviewed journals. Dr. Peng’s main area of expertise centres on the development of general equilibrium models and their application to China, with particular emphasis on demography, labour markets, energy and economic growth. She has led and completed many research projects covering various economic issues in China. Her recent research on China's population issues has attracted a lot of attention worldwide. As a principal investigator, she has provided consulting services to governments, research institutions, and universities in many countries including the United States, China, Australia, South Korea and Thailand. 

Peter Dixon was awarded his PhD by Harvard in 1972. After working at the IMF, Dixon joined the IMPACT Project in 1975. He was the joint recipient of the 1983 Research Medal of the Royal Society of Victoria for IMPACT’s contribution to social sciences in Australia. He was elected Fellow of the Academy of Social Sciences in Australia in 1982; awarded the Distinguished Fellowship of the Economic Society of Australia in 2003; appointed Sir John Monash Distinguished Professor by Monash University in 2006; elected to the Hall of Fame in the Global Trade Analysis Project in 2015; and awarded an honorary doctorate by the University of Pretoria in 2021.  In 2014, he was appointed Officer in the Order of Australia. Dixon is known internationally for his work in computable general equilibrium modelling. Together with colleagues, he created the ORANI model and its dynamic successor, MONASH. These models have been prominent in the Australian economic debate for 45 years and are used world-wide as modelling templates.  In recent years, he has led the development of the USAGE model of the U.S. which is used in government agencies in Washington DC.  Dixon's publication list contains 245 articles and 10 books.   

Philip Adams is a Professor at Victoria University’s Centre of Policy Studies. He was elected a Fellow of the Academy of the Social Sciences in Australia in 2016. In that year, he was also awarded the GTAP Research Fellow distinction for the term of 2016 to 2019. He holds a master’s degree and a Ph.D., both in economics, from the University of Melbourne. His current research interests are the economics of climate change and climate-related policies, economic policy modelling in developing countries, and the economic impacts of major health events such as COVID-19. Over recent years he has completed a number of projects for Australian federal and state governments, assisting them in model development and model applications to issues associated with climate change, adaptation, and abatement through emissions trading. He has also led overseas modelling projects in Uganda, Jordan, Oman, Saudi Arabia and South Africa. In recent years, he has been involved in several projects examining the economic impacts of COVID-19 on Australia, with specific reference to the state economies. He is author or co-author of over 70 peer-reviewed academic publications, including articles in Nature and Vaccine.

Dr. Yinhua Mai was an associate professor at the Centre of Policy Studies between 2005  and 2013 at Monash University. She has over twenty years’ experience in economic research and consulting. She holds a Ph.D. in Economics of Development from the Australian National University. Dr. Mai is a Ph.D. supervisor and an experienced lecturer, especially in teaching dynamic computable general equilibrium (CGE) modelling. Dr. Mai has conducted CGE modelling analysis for many clients such as the Australian Department of Foreign Affairs and Trade, the Asian Development Bank, the Australian Greenhouse Office, Wool Innovation and ITS Global. She is experienced in running CGE training and capacity-building projects. Since 2005, she has helped a number of research institutes in China and Malaysia to develop CGE policy-analysis capacities. Dr. Mai has published widely in the areas of international trade, energy and labour market analysis, especially in relation to economic development issues in China. Yinhua Mai is currently a clinical doctor in Melbourne, Victoria.