Applied general equilibrium (AGE) models have received considerable
attention and scrutiny in the public debate over the North American
Free Trade Agreement (NAFTA). This collection brings together the
leading AGE models that have been constructed to analyse NAFTA. A
variety of approaches to modelling trade liberalization are taken
in these studies, including multi-country and multi-sectoral
models, models that focus on institutional features of particular
sectors (agricultural, autos, steel, textiles and apparel)
affecting multinational firms and rules of origin, and models with
some inter-temporal structure. Further, by constructing stylized
models, theoretical linkages have been identified that drive
numerical results in the larger AGE models. The volume also
assesses what can be learned about the likely economic effects of
NAFTA from the collection of studies taken as a whole. Areas in
need of further study have been highlighted.
General
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