Regional Trading Arrangements for Chile: do the Results Differ with a Dynamic Model?

Thomas Rutherford () and David Tarr

Economie Internationale, 2003, issue 94-95, 261-281

Abstract: Starting from our earlier multi-region trade model, we develop two new 24 sector small open economy (SOE) computable general equilibrium models (CGE) of Chile. One is comparative static and the other is dynamic. We evaluate the impact of Chile forming free trade agreements with either NAFTA or MERCOSUR. Our principal result is that the dynamic SOE model does not produce welfare estimates significantly different from the comparative static SOE model. Our second result is that, although the difference is small, it is possible for a fully dynamic model to produce welfare estimates for a preferential trade area that are welfare inferior than those from a comparative static model.

Keywords: Economic Integration; Trade Forecasting and Simulation; Computable General Equilibrium Models; Computable and Other Applied General Equilibrium Models (search for similar items in EconPapers)
JEL-codes: C68 D58 F15 F17 (search for similar items in EconPapers)
Date: 2003
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Citations: View citations in EconPapers (33)

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Chapter: Regional Trading Arrangements for Chile: Do the Results Differ with a Dynamic Model? (2017)
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Persistent link: https://EconPapers.repec.org/RePEc:cii:cepiei:2003-2q-3qk

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