WELFARE COSTS OF U.S. QUOTAS IN TEXTILES, STEEL AND AUTOS

Jaime de Mélo · David G. Tarr

32 citations0/0 files storedWorld Scientific Studies in International Economics

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Global trade and economics Economic, financial, and policy analysis Global Trade and Competitiveness

Abstract

This paper deals with the problems of partial equlibrium analysis by presenting estimates from a static ten sector computable general equilibrium (CGE) model of the U.S. economy calibrated to the year 1984. Following the introduction, the paper is organized as follows. Section 2 outlines the model. Section 3 details the sources of estimates of premia on preexisting QRs (quota rents) in 1984 and the sources for the parameters describing demand and supply elasticities. Welfare and employment estimates of QR removal are presented by industry and in the aggregate in Section 4. Conclusions follow in Section 5.

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