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A Graphical Exposition of the GTAP Model

Martina Brockmeier

GTAP Technical Papers from Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University

Abstract: October 1996 (edited January 2000 and March 2001) This paper offers a graphical exposition of the GTAP Model of global trade. Particular emphasis is placed on the accounting, or equilibrium, relationships in the model. It begins with a treatment of the a one region version of GTAP, thereafter adding a rest of world region to highlight the treatment of trade flows in the model. The implementation of policy instruments in GTAP is also explored, using simple supply-demand graphics. The material provided in this paper was first developed as an introduction to GTAP for participants taking the annual short course. Based on its success in that venue, this paper has been placed on the "highly recommended" reading list for individuals seeking an introduction and overview of the GTAP framework. This paper offers a graphical exposition of the GTAP Model of global trade. Particular emphasis is placed on the accounting, or equilibrium, relationships in the model. It begins with a treatment of the a one region version of GTAP, thereafter adding a rest of world region to highlight the treatment of trade flows in the model. The implementation of policy instruments in GTAP is also explored, using simple supply-demand graphics. The material provided in this paper was first developed as an introduction to GTAP for participants taking the annual short course. Based on its success in that venue, this paper has been placed on the highly recommended reading list for individuals seeking an introduction and overview of the GTAP framework.

New Economics Papers: this item is included in nep-agr
Date: 2001
Note: GTAP Technical Paper No. 08
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