Does E-DRAM Accurately Portray the Economys Current Structure?
Due to data limitations, E-DRAM’s industrial sector data are not based on California-specificinformation but rather on national-level data periodically collected from surveys of United States companies. Various adjustments are then made to apply the data to California. Thus, the model attempts to approximate but does not exactly reflect California’s industrial economy, including how its industrial productivity differs from the rest of the nation. In addition, again due to data limitations, E-DRAM’s overall underlying structure of the state’s economy, including the interrelationships between its sectors, is calibrated to 2003as the base year. Thus, its calibration is a bit dated and does not reflect underlying changes in the California economy’s structure that have occurred during the recent severe recession, ongoing housing market turbulence, and restructuring of the financial markets. Certain Inconsistencies Exist Between the CGE Approach and CARB’s Assumption About Market Failures. A
