Trade Distortion Indexes and Multi-Regional Age Models: The Case of the Common Agricultural Policy

Universita La Sapienza, Economia Working Paper No.45

32 Pages Posted: 28 Nov 2001

See all articles by Luca Salvatici

Luca Salvatici

Università Roma Tre - Dipartimento di Economia

Date Written: November 2001

Abstract

In this paper, we build on the insights of the Trade Restrictiveness Index (TRI) approach by computing uniform tariff equivalents for the European Union primary sector using the Global Trade Analysis Project model and its associated data base. The main contribution of the paper is to extend and adapt the definition of the TRI, in order to make it consistent with the structure of a multi-regional Applied General Equilibrium model. In this perspective, we define a "modified TRI" based on the direct welfare evaluation (rather than on the Balance of trade function) and extend its definition in order to take into account the terms of trade impact. Finally, an empirical application of the index is provided with reference to two policy scenarios: the liberalization of the Common Agricultural Policy and the implementation of the "Agenda 2000" reform.

Keywords: international agricultural trade, tariffs and tariff factors, welfare analysis, computable general equilibrium models

JEL Classification: C68, F13, Q17

Suggested Citation

Salvatici, Luca, Trade Distortion Indexes and Multi-Regional Age Models: The Case of the Common Agricultural Policy (November 2001). Universita La Sapienza, Economia Working Paper No.45, Available at SSRN: https://ssrn.com/abstract=291947 or http://dx.doi.org/10.2139/ssrn.291947

Luca Salvatici (Contact Author)

Università Roma Tre - Dipartimento di Economia ( email )

Via Ostiense, 159
Roma, RM 00145
Italy
+390657335737 (Phone)

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
163
Abstract Views
1,706
Rank
329,180
PlumX Metrics