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Macro, industry and state effects in the U.S. of removing major tariffs and quotas

Author

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  • Peter B. Dixon
  • Maureen T. Rimmer
  • Marinos E. Tsigas

Abstract

We use a 500-industry CGE model of the U.S. to simulate the macro, industry and state effects of removing major U.S. tariffs and quotas. We find that this would generate a welfare gain of 0.07 per cent. For most industries, the output change would be negligible but for sugar, butter and several textile industries output contractions would be large. The state employment changes are all between -0.5 and 0.2 per cent. We explain the results by elementary mechanisms, in a way that does not require prior knowledge of the underlying CGE model.

Suggested Citation

  • Peter B. Dixon & Maureen T. Rimmer & Marinos E. Tsigas, 2004. "Macro, industry and state effects in the U.S. of removing major tariffs and quotas," Centre of Policy Studies/IMPACT Centre Working Papers g-146, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:g-146
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    References listed on IDEAS

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    1. Liew, L. H., 1984. ""Tops-down" versus "bottoms-up" approaches to regional modeling," Journal of Policy Modeling, Elsevier, vol. 6(3), pages 351-367, August.
    2. Peter B. Dixon & Maureen T. Rimmer, 2004. "Disaggregation of results from a detailed general equilibrium model of the US to the State level," Centre of Policy Studies/IMPACT Centre Working Papers g-145, Victoria University, Centre of Policy Studies/IMPACT Centre.
    3. 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. Eduardo A. Haddad & Alexandre A. Porsse, Paula C. Pereda, 2012. "Territorial Economic Impacts of Climate Anomalies in Brazil," Working Papers, Department of Economics 2012_20, University of São Paulo (FEA-USP).
    2. Hoque, Serajul, 2008. "The macroeconomic, industrial and distributional effects of removing tariffs in Bangladesh," MPRA Paper 9577, University Library of Munich, Germany.
    3. Christine WIECK & Thomas I. WAHL, 2010. "The Modelling of an Open Regional Economy: Effects of Imports and Trade Liberalization," Regional and Urban Modeling 284100047, EcoMod.
    4. Peter B. Dixon, 2006. "Evidence-based Trade Policy Decision Making in Australia and the Development of Computable General Equilibrium Modelling," Centre of Policy Studies/IMPACT Centre Working Papers g-163, Victoria University, Centre of Policy Studies/IMPACT Centre.

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    More about this item

    JEL classification:

    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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