Evaluating Trade Reform Using Ex-Post Criteria
AbstractIn contrast to existing work which takes an ex-ante approach and looks for policy prescriptions which yield welfare improvements, we take an ex-post approach. We ask whether there are indicators which show whether welfare has risen or not in the wake of a reform. That is, we look for evidence of welfare improvements in outcome space. Necessary and sufficient conditions for welfare improving trade reform are derived. These conditions are shown to be useful in evaluating Free Trade Areas and in reforming Article XXIV of GATT.
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Bibliographic InfoPaper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 6152.
Date of creation: Aug 1997
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Publication status: published as Canadian Journal of Economics, Volume: 33 Issue: 3 (August 2000) Pages: 787-798
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"A New Approach to Evaluating Trade Policy,"
CEP Discussion Papers
dp0173, Centre for Economic Performance, LSE.
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- Ju, Jiandong & Krishna, Kala, 2000. "Necessary conditions for welfare improving reforms," Economics Letters, Elsevier, vol. 67(2), pages 173-178, May.
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