Economic modelling uses data and information to simulate how the State’s economy responds to policies, events or projects that are expected to have large direct or indirect impacts.
The extent and magnitude of these economic impacts may differ from one industry to another, so it is useful to undertake modelling that considers impacts for the whole of the economy to inform decision-making.
One of the best and most robust whole-of-economy modelling approaches is Computable General Equilibrium (CGE) modelling. CGE models are complex but powerful tools used to evaluate long-run impacts at the industry and State level, enabling the determination of net economic costs, benefits, employment supported as well as impacts on income and Gross State Product.
CGE models are often the preferred approach for economic impact analysis. The economic modelling team use a CGE model to understand and consider consequences for a range of potential investment decisions, State government policy changes and other ad hoc simulations that can potentially impact the State and its industries.
