This book sets out techniques for using general equilibrium
numerical trade models and their application for both researchers
and practitioners in governmental and international agencies. The
chapters are connected by the broader theme of application of
general equilibrium computational methods to a range of policy and
other issues involving the global economy and international trade.
They reflect a long evolution in method and application from the
early 1970's until today.The chapters include procedures that allow
a competitive equilibrium in international trade with tariffs to be
calculated. Results of calculations of optimal tariffs with and
without retaliation in a sequence of simplified two-good,
two-country trade models are provided. A numerical general
equilibrium model of international trade involving major world
trading blocs (the United States, Japan, the EEC and the Rest of
the World) is used to analyze the effects of alternative
tariff-cutting formulae proposed by the major participants in the
Tokyo Round negotiations under the GATT.
General
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