Spatial Price Equilibrium Models with Discriminatory Ad Valorem Tariffs: Formulation and Comparative Computation Using Variational Inequalities

Anna Nagurney, Charles F. Nicholson and Phillip M. Bishop
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Anna Nagurney: University of Massachusetts
Charles F. Nicholson: Cornell University
Phillip M. Bishop: Cornell University

Chapter 9 in Recent Advances in Spatial Equilibrium Modelling, 1996, pp 179-200 from Springer

Abstract: Abstract Ad valorem tariffs are a trade policy instrument used by nearly all nations to restrict imports of a wide variety of commodities. Recent emphasis on tariffication as a means of trade liberalization underscores the importance of appropriately incorporating discriminatory ad valorem tariffs (tariffs imposed by the importing country that vary according to the exporting country) into spatial economic models. Both the recently-approved North American Free Trade Agreement (NAFTA) and the General Agreement on Tariffs and Trade (GATT) negotiations specify tariffication as a mechanism to lower trade barriers.

Keywords: Variational Inequality; Variational Inequality Problem; North American Free Trade Agreement; Supply Market; Supply Price (search for similar items in EconPapers)
Date: 1996
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DOI: 10.1007/978-3-642-80080-1_9

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