General Equilibrium Evaluation of Canada-U.S. Trade Liberalization in a Global Context

Randall Wigle

Canadian Journal of Economics, 1988, vol. 21, issue 3, 539-64

Abstract: This paper analyzes the effects of Canada-U.S. trade liberalization using a revised version of the global trade model due to J. Whalley (1986). The model incorpora tes scale features similar to those in R. G. Harris and D. Cox (1984). The evaluated effects of bilateral free trade are significantly dif ferent than those of Harris and Cox, and the paper evaluates the cont ribution of various model features to these differences. Elasticity v alues used, calibration procedures used, and the basic model structur e (global versus one-country) are found to be important contributions to the difference in model results.

Date: 1988
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