Dynamic Gains and Market Access Insurance: Another look at the AUSFTA
We use a dynamic computable general equilibrium model to revisit the dynamic benefits of the Australia-USA Free Trade Agreement and, in particular, to evaluate the insurance value of this agreement in the face of regional and global trade wars. The insurance benefits are quantified by comparing the status quo against alternative scenarios where some or all regions raise tariffs by 10 percent, both permanently and temporarily. These insurance gains are found to be as much as four times larger than the traditional status quo efficiency gains.
|Date of creation:||Jul 2007|
|Date of revision:|
|Contact details of provider:|| Postal: Australian School of Business Building, Sydney 2052|
Fax: +61)-2- 9313- 6337
Web page: http://www.economics.unsw.edu.au/
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Mahinda Siriwardana, 2006. "Australia's Involvement in Free Trade Agreements: An Economic Evaluation," Global Economic Review, Taylor & Francis Journals, vol. 35(1), pages 3-20.
- W. J. McKibbin & P. J. Wilcoxen, .
"The Theoretical and Empirical Structure of the G-Cubed Model,"
118, Brookings Institution International Economics.
- McKibbin, Warwick J. & Wilcoxen, Peter J., 1998. "The theoretical and empirical structure of the G-Cubed model," Economic Modelling, Elsevier, vol. 16(1), pages 123-148, January.
- McKibbin, W.J. & Wilcoxen, P.J., 1995. "The Theoretical and Empirical Structure of the G-Cubed Model," Papers 118, Brookings Institution - Working Papers.
- Drusilla K. Brown & Kozo Kiyota & Robert M. Stern, 2005.
"Computational Analysis of the US FTAs with Central America, Australia and Morocco,"
The World Economy,
Wiley Blackwell, vol. 28(10), pages 1441-1490, October.
- Drusilla K. Brown & Kozo Kiyota & Robert M. Stern, 2005. "Computational Analysis of the U.S FTAs with Central America, Australia, And Morocco," Working Papers 527, Research Seminar in International Economics, University of Michigan.
- Xiao-guang Zhang, 2006. "Armington Elasticities and Terms of Trade Effects in Global CGE Models," Staff Working Papers 0601, Productivity Commission, Government of Australia.
- Brown, Drusilla K., 1987. "Tariffs, the terms of trade, and national product differentiation," Journal of Policy Modeling, Elsevier, vol. 9(3), pages 503-526.
When requesting a correction, please mention this item's handle: RePEc:swe:wpaper:2007-23. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gabriele Gratton)
If references are entirely missing, you can add them using this form.