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Doubling U.S. Exports under the President's National Export Initiative: Is it realistic? Is it desirable?

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  • Peter B. Dixon
  • Maureen T. Rimmer

Abstract

President Obama's National Export Initiative is targeted at doubling U.S. exports between 2010 and 2015. We apply USAGE to quantify what the NEI would need to do to foreign import-demand curves and domestic export-supply curves to achieve this target. USAGE is a dynamic economy-wide model of the U.S. incorporating recession-relevant factor market specifications including excess capacity and wage/labor-demand elasticities that vary with the level of employment. In our central simulation, export-promotion policies compatible with the President's target reduce the cost of the current recession from about 70 million one-year jobs for the period 2008-2020 to 45 million jobs.

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Bibliographic Info

Paper provided by Victoria University, Centre of Policy Studies/IMPACT Centre in its series Centre of Policy Studies/IMPACT Centre Working Papers with number g-220.

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Date of creation: Apr 2011
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Handle: RePEc:cop:wpaper:g-220

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Related research

Keywords: Export promotion National Export Initiative U S recession Factor-market specification Excess capacity;

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  1. Dixon, Peter B. & Pearson, K.R. & Picton, Mark R. & Rimmer, Maureen T., 2005. "Rational expectations for large CGE models: A practical algorithm and a policy application," Economic Modelling, Elsevier, vol. 22(6), pages 1001-1019, December.
  2. Dixon, Peter B. & Rimmer, Maureen T., 2011. "You can't have a CGE recession without excess capacity," Economic Modelling, Elsevier, vol. 28(1), pages 602-613.
  3. Barro, Robert J., 1974. "Are Government Bonds Net Wealth?," Scholarly Articles 3451399, Harvard University Department of Economics.
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