Trade policy in Palestine: A reassessment

Marco Missaglia and Giovanni Valensisi

Journal of Policy Modeling, 2014, vol. 36, issue 5, 899-923

Abstract: The paper develops a CGE macro-model for Palestine, departing in three fundamental ways from the set-up applied in earlier studies. The present framework: (i) reformulates the modelling of fiscal policy in light of context-specific elements, including the absence of a government bond market and the incomplete transfer of revenues collected by Israel for the PNA; (ii) endogenizes private capital flows; (iii) postulates a demand-driven causality structure. Various policy scenarios are then assessed, with one crucial novelty: the overall effect of further trade liberalization turns out to be slightly contractionary, due to its fiscal implications.

Keywords: CGE models; Trade policy; Macroeconomics; Palestine (search for similar items in EconPapers)
JEL-codes: C68 F13 O24 (search for similar items in EconPapers)
Date: 2014
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Citations: View citations in EconPapers (7)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jpolmo:v:36:y:2014:i:5:p:899-923

DOI: 10.1016/j.jpolmod.2014.02.001

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