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Modeling Distribution Services and Assessing Their Welfare Effects in a General Equilibrium Framework

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  • Scott Bradford
  • Alexandre Gohin

Abstract

Most international trade models fail to account for the fact that almost all goods must pass through the distribution sector. The authors compare different approaches to modeling distribution within an Applied General Equilibrium framework and find that such modeling may significantly affect trade opening simulations. They also predict large potential gains from streamlining distribution. For instance, a 10% reduction in Japan's final goods distribution margins would benefit it as much as worldwide free trade would. They also find that, compared to trade opening, reducing margins leads to smaller inter-sectoral production shifts and thus may engender less political opposition. Copyright � 2006 The Authors; Journal compilation � 2006 Blackwell Publishing Ltd.

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Bibliographic Info

Article provided by Wiley Blackwell in its journal Review of Development Economics.

Volume (Year): 10 (2006)
Issue (Month): 1 (02)
Pages: 87-102

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Handle: RePEc:bla:rdevec:v:10:y:2006:i:1:p:87-102

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Cited by:
  1. Elisabeth M. Christen & Joseph Francois & Bernard Hoekman, 2012. "CGE Modeling of Market Access in Services," Economics working papers 2012-08, Department of Economics, Johannes Kepler University Linz, Austria.
  2. Robert M´barek & Ivelin Iliev Rizov, 2013. "European Coexistence Bureau. Best Practice Documents for coexistence of genetically modified crops with conventional and organic farming. 3. Coexistence of genetically modified maize and honey product," JRC-IPTS Working Papers JRC84850, Institute for Prospective and Technological Studies, Joint Research Centre.
  3. Piyush Tiwari & Masayuki Doi & Hidekazu Itoh, 2003. "A CGE Analysis of the Potential Impact of Information Technology on the Japanese Economy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(1), pages 17-33.
  4. Axel Tonini & Jerzy Michalek & Thomas Fellmann & Robert M'baretk & Jacques Delincé & George Philippidis & Maciej Bukowski & Piero Conforti & Alexandre Gohin & Andrey Krasovskii & Hans Van Meijl & D, 2013. "Simulating long term effects of policies in the agrifood sector: requirements, challenges and recommendations," Working Papers 222739, Institut National de la Recherche Agronomique, France.
  5. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2013. "Computable General Equilibrium Modeling of Market Access in Services," Handbook of Computable General Equilibrium Modeling, Elsevier.

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