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Modeling of Duty Drawback by Means of Domestic Final Consumption Subsidy

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  • Lips, Markus
  • Tabeau, Andrzej
  • van Tongeren, Frank

Abstract

We suggest an approach to take the Duty Drawback regime into account in a general equilibrium frame. A change of tariffs is imitated by a virtual subsidy for domestic consumers. The approach is based on a specific shock calculation and requires neither a change of the general equilibrium model nor an adjustment of the database. As an illustrative example we analyze a tariff reduction comparing the suggested approach with a normal application. Model results show clearly that the Duty Drawback regime has a considerable influence.

Suggested Citation

  • Lips, Markus & Tabeau, Andrzej & van Tongeren, Frank, 2004. "Modeling of Duty Drawback by Means of Domestic Final Consumption Subsidy," Conference papers 331179, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
  • Handle: RePEc:ags:pugtwp:331179
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    File URL: https://ageconsearch.umn.edu/record/331179/files/1497.pdf
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    References listed on IDEAS

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