A new approach to evaluating trade reform

James Anderson and J. Peter Neary

No 198808, Working Papers from School of Economics, University College Dublin

Abstract: Dual methods are awkward to use for quota reform analysis. This paper develops a distance function concept (Deaton (1979)) relevant to trade distortions: the Distorted Trade Distance Function. It has the great advantage of being a minimum value function, permitting the use of standard techniques for easy achievement of general positive and normative results in the evaluation of trade reform. Quotas are the predominant means of protection in developed countries and distance function methods are the natural method for their analysis. We also define an operational general equilibrium distance measure, the coefficient of trade utilization.

Keywords: Commercial policy--Mathematical models; Trade regulation (search for similar items in EconPapers)
Date: 1988-07
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http://hdl.handle.net/10197/1454 First version, 1988 (application/pdf)

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Working Paper: A New Approach to Evaluating Trade Reform (1988)
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