CONSISTENT TRADE POLICY AGGREGATIONInternational Economic Review, 2009, vol. 50, issue 3, pages 903-927 Abstract: Most empirical policy work requires policy aggregation. Trade policy aggregation exemplifies the aggregation problem poignantly, with thousands of highly dispersed trade barriers. This article provides methods of policy aggregation that are consistent with two common objectives of empirical work. One is to preserve real income. The other is to preserve the real volume of activity in the parts of the economy being aggregated. Both objectives must be achieved for consistent multicountry policy modeling. An application to India shows that the standard atheoretic method of aggregation overstates India's real income by around three times the global gains from free trade. Copyright © (2009) by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association. Date: 2009 Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: http://EconPapers.repec.org/RePEc:ier:iecrev:v:50:y:2009:i:3:p:903-927 Ordering information: This journal article can be ordered from Access Statistics for this article International Economic Review is edited by Kenneth I. Wolpin More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association |
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