Modeling distribution services and assessing their welfare effects in a general equilibrium framework

Scott Bradford () and Alexandre Gohin ()
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Alexandre Gohin: Économie et Sociologie Rurales - INRA - Institut National de la Recherche Agronomique

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Abstract: Most international trade models fail to account for the fact that almost all goods must pass through the distribution sector. The authors compare different approaches to modeling distribution within an Applied General Equilibrium framework and find that such modeling may significantly affect trade opening simulations. They also predict large potential gains from streamlining distribution. For instance, a 10% reduction in Japan's final goods distribution margins would benefit it as much as worldwide free trade would. They also find that, compared to trade opening, reducing margins leads to smaller inter-sectoral production shifts and thus may engender less political opposition.

Keywords: TRADE MODEL; APPLIED GENERAL EQUILIBRIUM (search for similar items in EconPapers)
Date: 2006
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Citations: View citations in EconPapers (5)

Published in Review of Development Economics, 2006, 10 (1), pp.87-102. ⟨10.1111/j.1467-9361.2005.00302.x⟩

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Journal Article: Modeling Distribution Services and Assessing Their Welfare Effects in a General Equilibrium Framework (2006)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-01931550

DOI: 10.1111/j.1467-9361.2005.00302.x

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