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Modeling Distribution Services and Assessing Their Welfare Effects in a General Equilibrium Framework

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  • Scott Bradford
  • Alexandre Gohin

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," Review of Development Economics, Wiley Blackwell, vol. 10(1), pages 87-102, February.
    • Handle: RePEc:bla:rdevec:v:10:y:2006:i:1:p:87-102
    DOI: 10.1111/j.1467-9361.2005.00302.x
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    1. Komen, M-H-C & Peerlings, J-H-M, 1996. "WAGEM : An Applied General Equilibrium Model for Agricultural and Environment Policy Analysis," Mansholt Working Papers 1996-04, Wageningen University, Mansholt Graduate School of Social Sciences.
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    7. M.H.C. Komen & J.H.M. Peerlings, 1996. "WAGEM: an applied general equilibrium model for agricultural and environmental policy analysis," Mansholt Working Papers 04-96, Wageningen University, Mansholt Graduate School of Social Sciences.
    8. 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.
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    Cited by:

    1. 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.
    2. 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.
    3. Elisabeth M. Christen & Joseph Francois & Bernard Hoekman, 2012. "CGE Modeling of Market Access in Services," Economics working papers 2012-08, Department of Economics, Johannes Kepler University Linz, Austria.
    4. 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 product," JRC Research Reports JRC84850, Joint Research Centre.
    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. 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.

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