IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/332429.html
   My bibliography  Save this paper

Improving the Representation of the U.S. in the MyGTAP Model with the Disaggregation of Labor and Households

Author

Listed:
  • Aguiar, Angel
  • Walmsley, Terrie
  • Carrico, Caitlyn

Abstract

The Global Trade Analysis Project (GTAP) modelling framework consists of a global database (Narayanan, Aguiar and McDougall, 2012) used in conjunction with a global applied general equilibrium model (Hertel, 1997). The GTAP model and database have been widely used for the analysis of global policy issues, such as free trade agreements. A limitation of the model is that it assumes just one regional household that captures both the government and private households. Those wishing to examine the impact of a global policy on multiple households in a particular country, while still retaining the rest of the world, are somewhat limited. The aim of this paper is to include additional detail for the U.S economy into the GTAP framework, thereby allowing for more detailed analysis of U.S. households. The starting point for this paper is the newly developed MyGTAP data program and model (Minor and Walmsley, 2013), which was specifically designed for this purpose. Additional data are gathered for the U.S. to incorporate 22 labor categories and 13 households, and modifications are also made to the MyGTAP model to better accommodate alternative demand structures within value added. We illustrate the use of this model by applying it to investigate the economic effects of the TransPacific Partnership (TPP) on U.S. households. The TPP agreement is quite extensive, covering a large portion of world trade and the removal of both tariff and non-tariff barriers. We find that the agreement has considerable potential to increase U.S. real GDP and incomes. Moreover, while all households in the U.S. gain as a result of rising employment/wages and falling prices, it is the low income households that gain most.

Suggested Citation

  • Aguiar, Angel & Walmsley, Terrie & Carrico, Caitlyn, 2013. "Improving the Representation of the U.S. in the MyGTAP Model with the Disaggregation of Labor and Households," Conference papers 332429, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:332429
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/332429/files/7764.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hiau LooiKee & Alessandro Nicita & Marcelo Olarreaga, 2009. "Estimating Trade Restrictiveness Indices," Economic Journal, Royal Economic Society, vol. 119(534), pages 172-199, January.
    2. Thomas W. Hertel & Terrie Walmsley & Ken Itakura, 2005. "Dynamic Effects Of The "New Age" Free Trade Agreement Between Japan And Singapore," World Scientific Book Chapters, in: Philippa Dee & Michael Ferrantino (ed.), Quantitative Methods For Assessing The Effects Of Non-Tariff Measures And Trade Facilitation, chapter 18, pages 483-523, World Scientific Publishing Co. Pte. Ltd..
    3. Peter A. Petri & Michael Plummer, 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration: Policy Implications," Policy Briefs PB12-16, Peterson Institute for International Economics.
    4. Walmsley, Terrie & Peter Minor, 2013. "MyGTAP Model: A Model for Employing Data from the MyGTAP Data Application-Multiple Households, Split Factors, Remittances, Foreign Aid and Transfers," GTAP Working Papers 4320, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    5. Hertel, Thomas, 1997. "Global Trade Analysis: Modeling and applications," GTAP Books, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, number 7685, December.
    6. Peter A. Petri & Michael G. Plummer & Fan Zhai, 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration: A Quantitative Assessment," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 6642, October.
    7. Narayanan, Badri & Thomas Hertel & Mark Horridge, 2010. "Linking Partial and General Equilibrium Models: A GTAP Application Using TASTE," GTAP Technical Papers 3192, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    8. Taheripour, Farzad & Dileep Birur & Thomas Hertel & Wally Tyner, 2007. "Introducing Liquid Biofuels into the GTAP Data Base," GTAP Research Memoranda 2534, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University.
    9. Petri, Peter A., 2012. "The Trans-Pacific Partnership and Asia-Pacific Integration," 2012: New Rules of Trade? December 2012, San Diego, California 143184, International Agricultural Trade Research Consortium.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Kawasaki, Kenichi, 2015. "The relative significance of EPAs in Asia-Pacific," Journal of Asian Economics, Elsevier, vol. 39(C), pages 19-30.
    2. Hirokazu Akahori & Daisuke Sawauchi & Yasutaka Yamamoto, 2017. "Measuring the Changes of Greenhouse Gas Emissions Caused by the Trans-Pacific Partnership," Sustainability, MDPI, vol. 9(5), pages 1-12, April.
    3. Lee, Hiro & Itakura, Ken, 2018. "The welfare and sectoral adjustment effects of mega-regional trade agreements on ASEAN countries," Journal of Asian Economics, Elsevier, vol. 55(C), pages 20-32.
    4. Anne-Célia Disdier & Charlotte Emlinger & Jean Fouré, 2015. "Atlantic versus Pacific Agreement in Agri-food Sectors: Does the Winner Take it All?," Working Papers halshs-01190840, HAL.
    5. Li, Qiaomin & Scollay, Robert & Gilbert, John, 2017. "Analyzing the effects of the Regional Comprehensive Economic Partnership on FDI in a CGE framework with firm heterogeneity," Economic Modelling, Elsevier, vol. 67(C), pages 409-420.
    6. Van Ha, Pham & Kompas, Tom & Nguyen, Hoa Thi Minh & Long, Chu Hoang, 2017. "Building a better trade model to determine local effects: A regional and intertemporal GTAP model," Economic Modelling, Elsevier, vol. 67(C), pages 102-113.
    7. Wainio, John & Dyck, John & Meade, Birgit Gisela Saager & Mitchell, Lorrarine & Zahniser, Steven & Arita, Shawn & Beckman, Jayson F. & Burfisher, Mary E., 2014. "Agriculture in the Trans-Pacific Partnership," Economic Research Report 188429, United States Department of Agriculture, Economic Research Service.
    8. Ken Itakura & Hiro Lee, 2023. "Should the United States rejoin the Trans-Pacific trade deal?," International Economics and Economic Policy, Springer, vol. 20(2), pages 235-255, May.
    9. Erwin Corong & Thomas Hertel & Robert McDougall & Marinos Tsigas & Dominique van der Mensbrugghe, 2017. "The Standard GTAP Model, version 7," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 2(1), pages 1-119, June.
    10. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    11. To, Minh Thu & Lee, Hiro, 2014. "Assessing the impacts of deeper trade reform in Vietnam in a general equilibrium framework," MPRA Paper 82271, University Library of Munich, Germany.
    12. Hosoe, Nobuhiro & Akune, Yuko, 2019. "Impact of Trade Liberalization on the Japanese Agri-food Sectors: A General Equilibrium Analysis with Farm Heterogeneity and Product Differentiation," Conference papers 333025, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    13. Gabriela Ortiz Valverde & María de la Concepción Latorre Muñoz, 2016. "The effects of the TPP in the Mexican economy: CGE assessment," EcoMod2016 9385, EcoMod.
    14. Befus, Tanja & Brockmeier, Martina & Bektasoglu, Beyhan, 2012. "Comparing Gravity Model Specifications to Estimate NTBs Using the GTAP Framework," Conference papers 332178, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    15. Mireya Sol�s & Saori N. Katada, 2015. "Unlikely Pivotal States in Competitive Free Trade Agreement Diffusion: The Effect of Japan's Trans-Pacific Partnership Participation on Asia-Pacific Regional Integration," New Political Economy, Taylor & Francis Journals, vol. 20(2), pages 155-177, April.
    16. KAWASAKI Kenichi, 2014. "The Relative Significance of EPAs in Asia-Pacific," Discussion papers 14009, Research Institute of Economy, Trade and Industry (RIETI).
    17. Joseph McKinney, 2014. "The Changing Global Economy: Roles Of The United States And The European Union In The Evolving Context," Economy of region, Centre for Economic Security, Institute of Economics of Ural Branch of Russian Academy of Sciences, vol. 1(4), pages 57-68.
    18. Kenichi Kawasaki & Badri G. Narayanan & Houssein Guimbard & Arata Kuno, 2019. "Analysis of the Role of Tariff Concessions in East Asia," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 13(2), pages 141-167, May.
    19. Fan He & Panpan Yang, 2015. "China's Role in Asia's Free Trade Agreements," Asia and the Pacific Policy Studies, Wiley Blackwell, vol. 2(2), pages 416-424, May.
    20. Paramita Dasgupta & Kakali Mukhopadhyay, 2017. "The impact of the TPP on selected ASEAN economies," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 6(1), pages 1-34, December.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:332429. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.