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Regionalising results from a detailed CGE model: Macro, industry and state effects in the U.S. of removing major tariffs and quotas

Author

Listed:
  • Dixon, Peter B.
  • Rimmer, Maureen T.
  • Tsigas, Marinos E.

Abstract

We describe a tops†down method for regionalising results from a detailed national CGE model. Using a 500†industry U.S. model, we generate macro and industry effects of removing major U.S. import restraints and translate these effects into employment results for U.S. states. Our results indicate that for most industries, the output change would be negligible but for sugar, butter and several textile industries output contractions would be large. The state employment changes are all between −0.5 and 0.2 percent. We explain the results by elementary mechanisms in a way that does not require prior knowledge of the underlying CGE model.

Suggested Citation

Handle: RePEc:eee:paresc:v:86:y:2007:i:1:p:31-55
DOI: 10.1111/j.1435-5957.2006.00101.x
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JEL classification:

  • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
  • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
  • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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