General equilibrium (GE) models have been criticized because of policy aggregation issues. Partial equilibrium (PE) models can be more disaggregated but do not account for the economy-wide effects from trade reform. In this article, we illustrate a methodology that combines a fully disaggregated, subsector (PE) model with a standard GE framework permitting us to extend GE analysis to the tariff line. We offer some insight into the aggregation errors implicit in standard GE analyses by comparing our PE/GE approach to that of GE only under a global dairy liberalization experiment. Our PE/GE approach allows for a comprehensive treatment of tariff rate quotas at the sub-sector level across narrowly defined product lines. Copyright 2007 International Association of Agricultural Economists.
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Article provided by International Association of Agricultural Economists in its journal Agricultural Economics.
Volume (Year): 37 (2007) Issue (Month): s1 (December) Pages: 271-280 Download reference. The following formats are available: HTML
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