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Welfare costs of U.S. quotas on textiles, steel, and autos

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  • de Melo, Jaime
  • Tarr, David

Abstract

This paper deals with the problems of partial equlibrium analysis by presenting estimates from a static ten sector computable general equilibrium (CGE) model of the U.S. economy calibrated to the year 1984. Following the introduction, the paper is organized as follows. Section 2 outlines the model. Section 3 details the sources of estimates of premia on preexisting QRs (quota rents) in 1984 and the sources for the parameters describing demand and supply elasticities. Welfare and employment estimates of QR removal are presented by industry and in the aggregate in Section 4. Conclusions follow in Section 5.

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Bibliographic Info

Paper provided by The World Bank in its series Policy Research Working Paper Series with number 83.

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Date of creation: 30 Sep 1988
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Handle: RePEc:wbk:wbrwps:83

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Keywords: Economic Theory&Research; Environmental Economics&Policies; TF054105-DONOR FUNDED OPERATION ADMINISTRATION FEE INCOME AND EXPENSE ACCOUNT; Trade Policy; Access to Markets;

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  1. Baldwin, Robert E. & Mutti, John H. & Richardson, J. David, 1980. "Welfare effects on the United States of a significant multilateral tariff reduction," Journal of International Economics, Elsevier, vol. 10(3), pages 405-423, August.
  2. John Whalley, 1984. "Trade Liberalization among Major World Trading Areas," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262231204, December.
  3. Richard Harris, 1983. "Applied General Equilibrium Analysis of Small Open Economies with Scale Economies and Imperfect Competition," Working Papers 524, Queen's University, Department of Economics.
  4. Feenstra, Robert C, 1988. "Quality Change under Trade Restraints in Japanese Autos," The Quarterly Journal of Economics, MIT Press, vol. 103(1), pages 131-46, February.
  5. Anderson, James E, 1985. "The Relative Inefficiency of Quotas: The Cheese Case," American Economic Review, American Economic Association, vol. 75(1), pages 178-90, March.
  6. Jones, Ronald W & Berglas, Eitan, 1977. "Import Demand and Export Supply: An Aggregation Theorem," American Economic Review, American Economic Association, vol. 67(2), pages 183-87, March.
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Citations

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Cited by:
  1. Peter Walkenhorst, 2004. "Liberalising Trade in Textiles and Clothing: A Survey of Quantitative Studies," International Trade 0401007, EconWPA.
  2. de Melo, Jaime & Tarr, David, 1990. "Do wage distortions justify protection in the U.S. auto and steel industries?," Policy Research Working Paper Series 517, The World Bank.
  3. Kala Krishna & Kathleen Hogan & Phillip Swagel, 1989. "The Non-Optimality of Optimal Trade Policy: The U.S. Automobile Indust ry Revisited, 1979-1985," NBER Working Papers 3118, National Bureau of Economic Research, Inc.
  4. Jensen, Jesper & Tarr, David, 2002. "Trade, foreign exchange, and energy policies in the Islamic Republic of Iran : reform agenda, economic implications, and impact on the poor," Policy Research Working Paper Series 2768, The World Bank.
  5. Morris Morkre & David Tarr, 1995. "Reforming Hungarian agricultural trade policy: A quantitative evaluation," Review of World Economics (Weltwirtschaftliches Archiv), Springer, vol. 131(1), pages 106-131, March.
  6. Peter B. Dixon, 2006. "Evidence-based Trade Policy Decision Making in Australia and the Development of Computable General Equilibrium Modelling," Centre of Policy Studies/IMPACT Centre Working Papers g-163, Victoria University, Centre of Policy Studies/IMPACT Centre.
  7. Rutherford, Thomas F. & Tarr, David G., 1998. "Trade liberalization and endogenous growth in a small open economy : a quantitative assessment," Policy Research Working Paper Series 1970, The World Bank.
  8. de Melo, Jaime & Stanton, Julie & Tarr, David, 1989. "Revenue-raising taxes: General equilibrium evaluation of alternative taxation in U.S. petroleum industries," Journal of Policy Modeling, Elsevier, vol. 11(3), pages 425-449.
  9. Robert W. McGee, 1998. "Some Ethical Issues for Accountants in Antidumping Trade Cases: An Examination of Recent Case Studies With Emphasis on Latin America," International Trade 9805008, EconWPA.
  10. Sam Laird & David Vanzetti & Santiago Fernández de Córdoba, 2005. "Smoke And Mirrors: Making Sense Of The Wto Industrial Tariff Negotiations," UNCTAD Blue Series Papers 30, United Nations Conference on Trade and Development.
  11. Rutherford, Thomas F. & Tarr, David G., 2002. "Trade liberalization, product variety and growth in a small open economy: a quantitative assessment," Journal of International Economics, Elsevier, vol. 56(2), pages 247-272, March.
  12. Gallaway, Michael P. & Blonigen, Bruce A. & Flynn, Joseph E., 1999. "Welfare costs of the U.S. antidumping and countervailing duty laws," Journal of International Economics, Elsevier, vol. 49(2), pages 211-244, December.
  13. World Bank, 2001. "Trade and Foreign Exchange Policies in Iran : Reform Agenda, Economic Implications and Impact on the Poor," World Bank Other Operational Studies 15478, The World Bank.
  14. Matusz, Steven J. & Tarr, David, 1999. "Adjusting to trade policy reform," Policy Research Working Paper Series 2142, The World Bank.

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