The effect of loudness recruitment and threshold elevation together with reduced frequency selectivity have been simulated to examine the combined effect of the two major consequences of cochlear hearing loss on the intelligibility of speech in speech-shaped noise. In experiment 1, four conditions were simulated: a moderate flat loss with auditory filters broadened by a factor of three (B3R2); a moderate-to-severe sloping loss with auditory filters broadened by a constant factor of three (B3RX); and these conditions with linear amplification applied prior to the simulation processing (B3R2+, B3RX+). For conditions B3R2 and B3RX, performance was markedly worse than for a control condition (normal hearing, condition R1) tested in a previous study. For conditions B3R2+ and B3RX+, linear amplification improved performance considerably. However, performance remained below that for condition R1 by between 5% and 19%. In experiment 2 the broadening of the auditory filters was made more realistic by making it a function of the absolute threshold at the center frequency of the auditory filter. Three different hearing losses were simulated: a moderate-to-severe sloping loss with variable broadening of the auditory filters (BXRX); the same moderate-to-severe sloping loss with linear amplification (BXRX+); and the same broadening of the auditory filters but without the simulation of loudness recruitment and threshold elevation (BX). For condition BXRX, performance was markedly worse than in condition R1, while performance in condition BX was somewhat worse than for condition R1. For condition BXRX+, linear amplification according to the NAL procedure improved performance to a large extent but it remained worse than for condition R1. The results are consistent with previous evidence indicating that only part of the decrease of performance produced by actual cochlear hearing loss can be compensated by conventional linear hearing aids.