The Dutch Disease in Indonesia : a computable general equilibrium approach

Abstract

The three-sector general equilibrium model of the Dutch Disease developed by Corden and Neary (1982) is adapted to a computable multisectoral framework to enable a comparison between the qualitative predictions of the theoretical models in the literature and the empirical solutions to an applied model. The applied model simulates policy options in a Dutch Disease context with a seven-sector computable general equilibrium representation of the Indonesian economy based on benchmark data for 1980