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A New Approach to Evaluating Trade Reform

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  • James E. Anderson

    (Boston College)

  • Peter Neary

Abstract

Dual methods are awkward to use for quota reform analysis. This paper develops a distance function concept (Deaton (1979)) relevant to trade distortions: the Distorted Trade Distance Function. It has the great advantage of being a minimum value function, permitting the use of standard techniques for easy achievement of general positive and normative results in the evaluation of trade reform. Quotas are the predominant means of protection in developed countries and distance function methods are the natural method for their analysis. We also define an operational general equilibrium distance measure, the coefficient of trade utilization.
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • James E. Anderson & Peter Neary, 1988. "A New Approach to Evaluating Trade Reform," Boston College Working Papers in Economics 171, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:171
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