#2291. Reducing Fuel Subsidies and Financing Road Infrastructure in Indonesia: A Financial Computable General Equilibrium Model

August 2026publication date
Proposal available till 30-05-2025
5 total number of authors per manuscript5020 $

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Journal’s subject area:
Development;
Economics and Econometrics;
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Abstract:
This article analyses whether government policies that reallocate funding for fuel subsidies to investment in transport infrastructure improve economic growth and income distribution. We develop a financial computable general equilibrium model to simulate the fiscal policies that reduce fuel subsidies to finance road investment. The novelty of this article is a dynamic model that covers multiple sectors, households, economic actors, assets and labour types.
Keywords:
economic growth; financial computable general equilibrium model; financial social accounting matrix; income distribution; transport; welfare

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