PRODUCT DIFFERENTIATION AND THE TREATMENT OF FOREIGN TRADE IN COMPUTABLE GENERAL EQUILIBRIUM MODELS OF SMALL ECONOMIES

Jaime de Melo and Sherman Robinson

Chapter 2 in Modeling Developing Countries' Policies in General Equilibrium, 2015, pp 21-41 from World Scientific Publishing Co. Pte. Ltd.

Abstract: This paper examines the treatment of exports and imports, and external closure rules, adopted in recent single-country computable general equilibrium models of small economies. The paper presents a simple, one-sector analytic model which captures the major features of the multi-sector counterpart used in applied models. The paper derives graphical and algebraic solutions to the model and shows that, unlike some earlier external closures, this one gives rise to a well-behaved, price-taking economy. The model is also useful to illustrate the role of elasticities in popular trade-theoretic models that include traded and non-traded goods.

Keywords: Applied General Equilibrium Models; Trade Policy; Computable General Equilibrium; Archetypes (search for similar items in EconPapers)
Date: 2015
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.worldscientific.com/doi/pdf/10.1142/9789814494816_0002 (application/pdf)
https://www.worldscientific.com/doi/abs/10.1142/9789814494816_0002 (text/html)
Ebook Access is available upon purchase.

Related works:
Journal Article: Product differentiation and the treatment of foreign trade in computable general equilibrium models of small economies (1989)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:wsi:wschap:9789814494816_0002

Ordering information: This item can be ordered from

Access Statistics for this chapter

More chapters in World Scientific Book Chapters from World Scientific Publishing Co. Pte. Ltd.
Bibliographic data for series maintained by Tai Tone Lim ().