Mapping trade to household budget survey: A conversion framework for assessing the distributional impact of trade policies

Nhung Luu, Nicolas Woloszko, Orsetta Causa, Christine Arriola, Frank van Tongeren and Åsa Johansson

No 244, OECD Trade Policy Papers from OECD Publishing

Abstract: Whether gains from trade are equally distributed within countries is the subject of a lively debate. This paper presents a novel framework to analyse the distributional effects of trade policy by linking the OECD’s CGE trade model, METRO, with consumption expenditure data from household budget surveys. Specifically, this paper describes a methodology to produce a concordance and transition matrix linking GTAP sectors to household survey classifications based on the Classification of Individual Consumption According to Purpose (COICOP). A mapping methodology is an important pre-requisite for investigating research questions concerning the influence of household behaviour changes on trade, as well as trade developments and policy on household welfare. The paper provides an illustration of the mapping of trade policy induced price changes onto household expenditures by conducting stylized tariff simulations with METRO and translating those into household expenditures by income decile for selected EU countries.

Keywords: Household expenditure microdata; Inequality; modelling; Trade policy (search for similar items in EconPapers)
JEL-codes: C68 D12 E21 F13 F14 (search for similar items in EconPapers)
Date: 2020-12-04
New Economics Papers: this item is included in nep-cmp and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://doi.org/10.1787/5fc6181b-en (text/html)

Related works:
Working Paper: Mapping Trade to Household Budget Survey: a conversion framework for assessing the distributional impact of trade policies (2020)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:oec:traaab:244-en

Access Statistics for this paper

More papers in OECD Trade Policy Papers from OECD Publishing Contact information at EDIRC.
Bibliographic data for series maintained by ().