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APPENDIX 1 - The WAYANG Model of the Indonesian economy

Published online by Cambridge University Press:  05 June 2012

Glyn Wittwer
Affiliation:
University of Adelaide, Australia
Kym Anderson
Affiliation:
University of Adelaide
Randy Stringer
Affiliation:
University of Adelaide
Erwidodo
Affiliation:
Centre for Agro-Socioeconomic Research, (CASER), Bogor, Indonesia
Tubagus Feridhanusetyawan
Affiliation:
Productivity Commission, Melbourne
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Summary

WAYANG is a comparative static computable general equilibrium (CGE) model. It is a linearised model in the ORANI school (Dixon, Parmenter, Sutton and Vincent, 1982). However, WAYANG has been adapted to take account of some of the specific characteristics of a developing, largely agrarian economy (Warr, Marpudin, da Costa and Tharpa, 1998). As with other recent versions of models of this school, it uses an ORANI-G format in the model code, within the GEMPACK software used to solve the model (Harrison and Pearson 1994). Wittwer (1999) presents a detailed elaboration of WAYANG, adapted from Horridge, Parmenter and Pearson (1998).

There are 65 industries in WAYANG producing 65 commodities. WAYANG contains data and parameters to characterise six different sets of commodity sales. These are inputs to (1) production and (2) investment, sales to (3) households, (4) exports and (5) government, and (6) changes in stocks. In addition, the model includes details of production costs, including purchases of intermediate commodities, primary factors and other costs. WAYANG also includes a unique module capturing the distribution of incomes and expenditures between ten different households, who, by assumption, own all factors of production. The model contains a small fiscal extension and finally, a top-down regional disaggregation of the Indonesian economy. This appendix outlines the model by going through each of the above components systematically.

Type
Chapter
Information
Indonesia in a Reforming World Economy
Effects on Agriculture, Trade and the Environment
, pp. 244 - 254
Publisher: The University of Adelaide Press
Print publication year: 2009

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