A global CGE model at the NUTS 1 level for trade policy evaluation
AbstractThis paper aims at building a global CGE trade model at NUTS 1 level (subnational level) for the EU15 regions. The focus is on the production side. The model is used to assess production reallocation across sectors in each NUTS 1 regions after an agricultural tariff liberalization. Nevertheless, it can also be used to simulate other trade policy reform according to the special objective of the researcher. The model is parsimonious in terms of data at the NUTS 1 level. The unskilled and skilled labour are the source of the heterogeneity across the NUT 1 regions. A stylised model is built in order to interpret the results. A sensitivity analysis on trade policy results according to two different degrees of skilled/unskilled labour mobility (perfect immobility and high mobility within the EU15) is conducted. Moreover, an integrated unskilled/skilled labour market within EU27 is tested.
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Bibliographic InfoPaper provided by University of Verona, Department of Economics in its series Working Papers with number 10/2010.
Date of creation: Jun 2010
Date of revision:
computable general equilibrium models; international trade;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
- D58 - Microeconomics - - General Equilibrium and Disequilibrium - - - Computable and Other Applied General Equilibrium Models
- Q17 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agriculture in International Trade
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-06-11 (All new papers)
- NEP-CMP-2010-06-11 (Computational Economics)
- NEP-INT-2010-06-11 (International Trade)
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