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Tariff Policy Assessment: An application to the Free Trade Agreement between Colombia and U.S

Author

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  • Gustavo Hernández

    (Departamento Nacional de Planeación)

Abstract

Computable general equilibrium models have been widely used in tariff policy assessment as a tool for the analysis and evaluation of scenarios, with the aim to ascertain the effects of these policies on the economy. This paper reviews the assessments to the Free Trade Agreement between Colombia and the United States (FTA), showing the advantages, disadvantages and different modeling alternatives. The diversity of the results in the evaluation of the possible effects of the FTA is found to arise from three sources: the structure of the model, the Armington elasticities and sectoral aggregation.

Suggested Citation

  • Gustavo Hernández, 2014. "Tariff Policy Assessment: An application to the Free Trade Agreement between Colombia and U.S," Lecturas de Economía, Universidad de Antioquia, Departamento de Economía, issue 80, pages 49-77, Enero-Jun.
    • Handle: RePEc:lde:journl:y:2014:i:80:p:49-77
    DOI: 10.17533/udea.le.n80a2
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    More about this item

    Keywords

    Computable general equilibrium models; FTA between Colombia and the U.S.; tariff policy;
    All these keywords.

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • D04 - Microeconomics - - General - - - Microeconomic Policy: Formulation; Implementation; Evaluation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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