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Spatial Price Equilibrium Models with Discriminatory Ad Valorem Tariffs: Formulation and Comparative Computation Using Variational Inequalities

In: Recent Advances in Spatial Equilibrium Modelling

Author

Listed:
  • Anna Nagurney

    (University of Massachusetts)

  • Charles F. Nicholson

    (Cornell University)

  • Phillip M. Bishop

    (Cornell University)

Abstract

Ad valorem tariffs are a trade policy instrument used by nearly all nations to restrict imports of a wide variety of commodities. Recent emphasis on tariffication as a means of trade liberalization underscores the importance of appropriately incorporating discriminatory ad valorem tariffs (tariffs imposed by the importing country that vary according to the exporting country) into spatial economic models. Both the recently-approved North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT) negotiations specify tariffication as a mechanism to lower trade barriers.

Suggested Citation

  • Anna Nagurney & Charles F. Nicholson & Phillip M. Bishop, 1996. "Spatial Price Equilibrium Models with Discriminatory Ad Valorem Tariffs: Formulation and Comparative Computation Using Variational Inequalities," Advances in Spatial Science, in: Jeroen C. J. M. Bergh & Peter Nijkamp & Piet Rietveld (ed.), Recent Advances in Spatial Equilibrium Modelling, chapter 9, pages 179-200, Springer.
    • Handle: RePEc:spr:adspcp:978-3-642-80080-1_9
    DOI: 10.1007/978-3-642-80080-1_9
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    Cited by:

    1. Nagurney, Anna & Besik, Deniz & Dong, June, 2019. "Tariffs and quotas in world trade: A unified variational inequality framework," European Journal of Operational Research, Elsevier, vol. 275(1), pages 347-360.
    2. Nagurney, Anna & Hassani, Dana & Nivievskyi, Oleg & Martyshev, Pavlo, 2024. "Multicommodity international agricultural trade network equilibrium: Competition for limited production and transportation capacity under disaster scenarios with implications for food security," European Journal of Operational Research, Elsevier, vol. 314(3), pages 1127-1142.

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