A General Equilibrium Analysis of US Foreign Trade Policy
Using applied general equilibrium methods to analyze recent debates about the conduct of U.S. foreign trade policy, de Melo and Tarr show that in terms of costs to the economy and to consumers, nontariff barriers in textiles, automobiles, and steel have more than reversed the benefits of cumulative tariff liberalization achieved in successive postwar GATT rounds.
The authors' model is the first large-scale computer simulation of the effects of changes in U.S. import quotas. It begins with perfect competition, proceeds to imperfect factor markets, and then introduces increasing returns to scale and imperfect product markets. The basic model and its variants are carefully explained to show how valuable and sensible a tool the model is for analyzing trade policy and to facilitate understanding of the construction of a general equilibrium model. Tables and figures are used extensively to illustrate the principles involved.
A detailed introduction takes up trade policy issues, argues for the superiority of a general equilibrium approach over the more traditional partial equilibrium approach, and surveys previous studies of the cost of protection. The chapters that follow describe the basic general equilibrium model and its extensions and application to specific policies and industries. The authors summarize their results by explaining the costs per job protected by quotas, the estimated costs of all quantitative restrictions, and the computation of tariffs with a welfare cost equivalent to that of quotas.
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Trade Policy Analysis in a OneSector General Equilibrium
The Basic General Equilibrium Trade Model
Quota Premium Rates and Rent Capture
Welfare Costs of usQuotas in Textiles and Apparel
Welfare Costs of Quantitative Restrictions under Different Factor
Welfare Costs of Quantitative Restrictions with Imperfect
Evaluation of Alternative Strategies
central elasticity case
Mapping of National Income and Product Accounts NIPA valueadded
US civilian employment by sector in 1984
B Elasticity Specification and Data Sources
imports for domestic goods in intermediate
Foreign direct investment in the us automobile industry
Other editions - View all
aggregate apparel products appendix assume assumption auto industry automobiles autos and steel average billion calibration capital stock central elasticity chapter conjectures constant returns consumer contestable market costs of protection costs of QRs crude oil curve discussed distortionary cost domestic price elasticity estimate elasticity of demand elasticity of substitution endogenous equation equivalent variation excise tax exogenous exports factor final demand foreign high elasticity Hong Kong imperfect competition income intermediate international capital mobility labor supply labor-leisure choice low elasticity marginal costs Melo monopolistic competition monopsony Morkre motor vehicles NIPA numeraire optimal output parameter partial equilibrium percent premia price elasticity product differentiation profits quota premium rate quota rents quota rights real exchange rate removing QRs removing quotas returns to scale suppliers tariff rate Tarr terms-of-trade textiles and apparel three sectors tion trade policy Traded services United value added voluntary export restraints wage distortions welfare costs welfare gain workers
Trade Policy and Global Poverty
Limited preview - 2004
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Applied Methods for Trade Policy Analysis: A Handbook
Joseph F. Francois,Kenneth A. Reinert
No preview available - 1997