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U. S. ADJUSTMENT IN THE 1990s: A CGE ANALYSIS OF ALTERNATIVE TRADE STRATEGIES

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Author Info
KENNETH HANSON
SHERMAN ROBINSON
STEPHEN TOKARICK

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Abstract

This paper investigates the implications for the structure of the U. S. economy of a reduction in the U. S. trade deficit. We explore two alternative adjustment scenarios. First, we assume an environment of successful world trade liberalization. An alternative view is that the world economy will lapse into a protectionist environment. We use a 30-sector computable general equilibrium (CGE) model of the United States to analyze the impact of these two scenarios. When analyzing the protectionist scenario, we do a variety of experiments designed to explore the impact of protectionist policies on the U. S. economy. [C68, F13]

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Article provided by Korean International Economic Association in its journal International Economic Journal.

Volume (Year): 7 (1993)
Issue (Month): 2 (June)
Pages: 27-49
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Handle: RePEc:taf:intecj:v:7:y:1993:i:2:p:27-49

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  1. Jones, Ronald W & Scheinkman, Jose A, 1977. "The Relevance of the Two-Sector Production Model in Trade Theory," Journal of Political Economy, University of Chicago Press, vol. 85(5), pages 909-35, October. [Downloadable!] (restricted)
  2. Chalfant, James A, 1987. "A Globally Flexible, Almost Ideal Demand System," Journal of Business & Economic Statistics, American Statistical Association, vol. 5(2), pages 233-42, April.
  3. W. M. Corden, 1966. "The Structure of a Tariff System and the Effective Protective Rate," Journal of Political Economy, University of Chicago Press, vol. 74, pages 221. [Downloadable!] (restricted)
  4. Mussa, Michael, 1974. "Tariffs and the Distribution of Income: The Importance of Factor Specificity, Substitutability, and Intensity in the Short and Long Run," Journal of Political Economy, University of Chicago Press, vol. 82(6), pages 1191-1203, Nov.-Dec.. [Downloadable!] (restricted)
  5. Robinson, Sherman, 1989. "Multisectoral models," Handbook of Development Economics, in: Hollis Chenery† & T.N. Srinivasan (ed.), Handbook of Development Economics, edition 1, volume 2, chapter 18, pages 885-947 Elsevier. [Downloadable!] (restricted)
  6. Ethier, Wilfred, 1974. "Some of the theorems of international trade with many goods and factors," Journal of International Economics, Elsevier, vol. 4(2), pages 199-206, May. [Downloadable!] (restricted)
  7. Deaton, Angus S & Muellbauer, John, 1980. "An Almost Ideal Demand System," American Economic Review, American Economic Association, vol. 70(3), pages 312-26, June. [Downloadable!] (restricted)
  8. Thaler, Richard H, 1989. "Interindustry Wage Differentials," Journal of Economic Perspectives, American Economic Association, vol. 3(2), pages 181-93, Spring. [Downloadable!] (restricted)
  9. de Melo, Jaime & Robinson, Sherman, 1989. "Product differentiation and the treatment of foreign trade in computable general equilibrium models of small economies," Journal of International Economics, Elsevier, vol. 27(1-2), pages 47-67, August. [Downloadable!] (restricted)
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