U.S.Adjustment In The 1990S: A Cge Analysis Of Alternative Trade Strategies

Abstract

This paper investigates the implications for the structure of the U.S.economy of a reduction in the U.S. trade deficit. We explore two alternative adjustment scenarios. First, we assume an environment of successful world trade liberlization. An alternative view is that the world economy will lapse into a protectionist environment. We use a 30-sector computable general equilibrium (CGM) model of the United States to analyze the impact of these two scenarios. When analyzing the protectionist scenario, we do a variety of experiments designed to explore the impact of protectionist policies on the U.S. economy. [C68, F13]

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