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Modeling distribution services and assessing their welfare effects in a general equilibrium framework

Author

Listed:
  • Scott Bradford

    (BYU - Brigham Young University)

  • Alexandre Gohin

    (Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique)

Abstract

Most international trade models fail to account for the fact that almost all goods must pass through the distribution sector. The authors compare different approaches to modeling distribution within an Applied General Equilibrium framework and find that such modeling may significantly affect trade opening simulations. They also predict large potential gains from streamlining distribution. For instance, a 10% reduction in Japan's final goods distribution margins would benefit it as much as worldwide free trade would. They also find that, compared to trade opening, reducing margins leads to smaller inter-sectoral production shifts and thus may engender less political opposition.

Suggested Citation

  • Scott Bradford & Alexandre Gohin, 2006. "Modeling distribution services and assessing their welfare effects in a general equilibrium framework," Post-Print hal-01931550, HAL.
    • Handle: RePEc:hal:journl:hal-01931550
    DOI: 10.1111/j.1467-9361.2005.00302.x
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    Cited by:

    1. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2012. "CGE modeling of market access in services," Policy Research Working Paper Series 6106, The World Bank.
    2. Robert M´barek & Ivelin Iliev Rizov, 2013. "European Coexistence Bureau. Best Practice Documents for coexistence of genetically modified crops with conventional and organic farming. 3. Coexistence of genetically modified maize and honey production," JRC Research Reports JRC84850, Joint Research Centre.
    3. Piyush Tiwari & Masayuki Doi & Hidekazu Itoh, 2003. "A CGE Analysis of the Potential Impact of Information Technology on the Japanese Economy," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 6(1), pages 17-33.
    4. Celine de Quatrebarbes & Bertrand Laporte & Stéphane Calipel, 2021. "Fighting the soaring prices of agricultural food products. VAT versus Trade tariffs exemptions in a context of imperfect competition in Niger : CGE and micro-simulation approach," CERDI Working papers hal-03138369, HAL.
    5. Christen, Elisabeth & Francois, Joseph & Hoekman, Bernard, 2013. "Computable General Equilibrium Modeling of Market Access in Services," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1601-1643, Elsevier.
    6. Céline de Quatrebarbes & Bertrand Laporte & Stéphane Calipel, 2021. "Fighting the soaring prices of agricultural food products -VAT versus Trade tariffs exemptions. A case study in Niger," Working Papers hal-03164636, HAL.

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