This paper presents an applied general equilibrium model used to quantify the impacts of trade policies on Brazil and its trade partners, under alternative assumptions of constante returns and perfect competition and economies of scale and imperfect competition. The results suggest that the welfare impacts are larger when economies of scale and imperfect competition are modeled. The exploitation of economies of scale contributes to this result, through rationalization and pro-competitive effects on the Brazilian industries. Also, decreasing in comsumer prices and increasing in returns of primary factors are larger under assumptions of economies of scale and imperfect competition.
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Length: Date of creation: 2004 Date of revision: Handle: RePEc:anp:en2004:106
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Find related papers by JEL classification: C68 - Mathematical and Quantitative Methods - - Mathematical Methods and Programming - - - Computable General Equilibrium Models F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies D43 - Microeconomics - - Market Structure and Pricing - - - Oligopoly and Other Forms of Market Imperfection
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