Book contents
- Frontmatter
- Contents
- List of Tables
- List of Figures
- Acknowledgements
- List of Contributors
- A Note to Readers
- Dedication
- Part I Introduction
- Part II Basic Frameworks
- Part III Standard Applications
- 7 Sector-Focused General Equilibrium Modeling
- 8 Multi-Market, Multi-Region Partial Equilibrium Modeling
- 9 Multi-Region General Equilibrium Modeling
- 10 Household Disaggregation
- Part IV Extensions
- Author Index
- Subject Index
7 - Sector-Focused General Equilibrium Modeling
Published online by Cambridge University Press: 05 June 2012
- Frontmatter
- Contents
- List of Tables
- List of Figures
- Acknowledgements
- List of Contributors
- A Note to Readers
- Dedication
- Part I Introduction
- Part II Basic Frameworks
- Part III Standard Applications
- 7 Sector-Focused General Equilibrium Modeling
- 8 Multi-Market, Multi-Region Partial Equilibrium Modeling
- 9 Multi-Region General Equilibrium Modeling
- 10 Household Disaggregation
- Part IV Extensions
- Author Index
- Subject Index
Summary
Introduction
Computable general equilibrium (CGE) models have become a useful tool in analyzing a number of varied trade policy issues. These models have been used to study the economic effects of trade policies, such as tariffs and nontariff barriers (NTBs), in a variety of settings. Some are multi-country models that focus on analyzing the effects of global trade policies or policy changes, such as the latest Uruguay Round agreements. Others focus on analyzing commercial policies of a single country, where depending on whether the country is a developed or developing economy, the modeled trade issues and policies can be quite diverse.
This chapter builds on the methodology developed in Part II and describes how it can be applied to analyze detailed and sector-specific commercial policies in a general equilibrium framework. More specifically, we utilize the flexible aggregation procedure introduced in Chapter 4 by Reinert and Roland-Hoist to analyze tariffs and quotas in a single-country model of the United States. We utilize a social accounting matrix (SAM) with a high degree of sectoral disaggregation: 487 industrial sectors. We aggregate it in various ways specific to the commercial policies under consideration. This allows for very exact modeling of commerecal policies that are targeted at high levels of disaggregation and for credible analysis of the commercial policies' effects on the protected sectors' upstream suppliers and downstream industrial consumers.
Section II of the chapter will motivate and outline the flexible aggregation approach to commercial policy analysis.
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- Information
- Applied Methods for Trade Policy AnalysisA Handbook, pp. 189 - 230Publisher: Cambridge University PressPrint publication year: 1997
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