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Measuring the Restrictiveness of International Trade Policy

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ISBN-10: 0262012200

ISBN-13: 9780262012201

Edition: 2005

Authors: James E. Anderson, J. Peter Neary

List price: $8.75
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Description:

A country's stance on international trade is an important component of its economic welfare. Yet relatively little theoretical attention has been paid to developing accurate methods to assess trade policies, leaving practitioners and policy makers with ad hoc solutions that lack theoretical foundation. In this book, James Anderson and Peter Neary present a new approach to gauging trade restrictiveness. Extending the standard theory of index numbers that apply to prices, output, or productivity, Anderson and Neary develop index numbers that apply directly to policy variables. Their theoretical work builds on, and extends, the standard theory of policy reform in open economics; their…    
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Book details

List price: $8.75
Copyright year: 2005
Publisher: MIT Press
Publication date: 11/18/2005
Binding: Hardcover
Pages: 352
Size: 6.50" wide x 9.50" long x 1.50" tall
Weight: 1.298
Language: English

James E. Anderson is Neenan Professor of Economics at Boston College.

J. Peter Neary is Professor of Political Economy at University College Dublin.

List of Figures
List of Tables
Preface
The Problem
Introduction
Measuring Trade Policy Restrictiveness: A Nontechnical Introduction
The Trade-Weighted Average Tariff
Alternative Weights: Current or Free Trade? Imports or Production?
Measures of Tariff Dispersion
The Welfare-Equivalent Uniform Tariff
The Import-Volume-Equivalent Uniform Tariff
Conclusion
The Geometry of the Trade-Weighted Average Tariff
Trade Policy Reform and the Tri
Tariff Reform in General Equilibrium
Household and Firm Behavior
The Trade Expenditure Function
Shadow Prices and the Marginal Cost of Tariffs
Welfare-Improving Tariff Changes: Radial Reductions and Concertina Reform
Welfare and Tariffs: A Diagrammatic Illustration
Conclusion
Welfare-Improving Tariff Changes in a Large Open Economy
The Trade Restrictiveness Index
The True Cost-of-Living Index
The Balance-of-Trade Function
The Trade Restrictiveness Index
The TRI and the Trade-Weighted Average Tariff I
The TRI and the Trade-Weighted Average Tariff II
The TRI and the Cost of Protection
Conclusion
The Mercantilist Trade Restrictiveness Index
The MTRI
The MTRI and the TRI
The MTRI and the Trade-Weighted Average Tariff
Conclusion
Properties of the Import Volume Functions
Trade Reform, Trade Restrictiveness, and Tariff Structure
Generalized Tariff Moments
Welfare and Trade Policy Reform
Welfare Effects of Tariff Reforms That Reduce Dispersion
Market Access and Changes in Tariff Moments
Tariff Changes and Market Access
Changes in the TRI and MTRI and Measures of Tariff Dispersion
Relating Generalized to Observable Moments
Conclusion
Trade Reform with Tariffs and Quotas
The Distorted Trade Expenditure Function
Rent-Sharing and the Welfare Cost of Quotas
Trade Reform without Restrictions on the Trade Expenditure Function
Restricting the Trade Expenditure Function
Quota Reform
Tariff Reform in the Presence of Quotas
Alternative Rent-Sharing Rules
Conclusion
Appendix
The TRI and MTRI with Quotas
The TRI with Tariffs and Quotas
Equi-restrictive Quotas Following Changes in Exogenous Variables
Quotas and the MTRI
Conclusion
Neutral Growth and the Restrictiveness of Quotas
Partial Equilibrium Antecedents of the TRI and MTRI
Alternative Economic Environments
Trade Restrictiveness in a Large Country
External Scale Economies
Monopolistic Competition
Conclusion
Details of the Two-Country Model
Multicountry Trade Policy
Aggregating Trade Restrictions in Modeling
Demand Estimation
Simulation Models
Inference of Trade Costs
Openness and Growth Regressions
Multilateral Resistance in the Generalized Gravity Model
Applications
A General Framework for Measuring Policy Restrictiveness
Other Policy Distortions
Import Subsidies and Export Distortions
The Trade Restrictiveness of Domestic Distortions
An Application: The Trade Restrictiveness of Mexican Agricultural Policy
Conclusion
Effects of Factor-Market Distortions
Complex Trade Policies
Alternative Reference Points
Sector-Specific Income
Effective Protection in the United States: An Application
Other Sectoral Reference Points
Conclusion
Quantity Aggregates
The Quantity Analogue of the TRI
The Quantity Analogue of the MTRI
Duality and Policy Distance Functions
Relation to the Coefficient of Resource Utilization
Application I: The Multi-Fibre Arrangement
Application II: The Trade Restrictiveness of US Dairy Quotas
Measuring Trade Restrictiveness in a Simple CGE Model
The Model
Data and Data Compromises
Measures of Trade Restrictiveness
Conclusion
The CES-CET Model
Conclusion
References
Index