MODELLING THE EFFECTS OF PROTECTION IN A DYNAMIC FRAMEWORK

Jaime de Melo and Kemal Dervis

Chapter 12 in Modeling Developing Countries' Policies in General Equilibrium, 2015, pp 271-294 from World Scientific Publishing Co. Pte. Ltd.

Abstract: The effects of alternative trade strategies on development performance are analyzed using a small, dynamic, computable general equilibrium model. The static allocation costs of protection are quantitatively weighed against the dynamic benefits resulting from heterogenous capital goods and imperfect foresight. An attempt at quantifying the effects of protection on employment and savings behavior is made by using submodels specifying distortions in labor-markets and alternative savings functions.

Keywords: Applied General Equilibrium Models; Trade Policy; Computable General Equilibrium; Archetypes (search for similar items in EconPapers)
Date: 2015
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Journal Article: Modelling the effects of protection in a dynamic framework (1977)
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