An Overview of the Modelling of the Choices and Consequences of U.S. Trade Policy
Our paper is designed to provide the context for the theme of the conference, "The Representation of Constituent Interests in the Design and Implementation of U.S. Trade Policies." We begin by reviewing the normative and political economy approaches to the modeling of trade policies. We identify the major limitations of these approaches and then discuss what Dixit (1996) has referred to as the "transaction-cost approach," which may provide a middle ground between the other approaches and enable us to address some hitherto imperfectly understood issues of trade policy.
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