Verfügbarkeit: Value of WTO Trade Agreements in a New Keynesian Model

Value of WTO Trade Agreements in a New Keynesian Model:

We revisit the question of the quantitative benefits of WTO trade agreements in a setup that is non-standard from the traditional trade policy point of view. We show that in a New Keynesian model, unilateral trade liberalization reduces welfare due to terms-of-trade deterioration, creating an incent...

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1. Verfasser:	Ganelli, Giovanni (VerfasserIn)
Format:	Elektronisch E-Book
Sprache:	English
Veröffentlicht:	Washington, D.C International Monetary Fund 2015
Schriftenreihe:	IMF Working Papers: Working Paper No. 15 / 37
Online-Zugang:	UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext
Zusammenfassung:	We revisit the question of the quantitative benefits of WTO trade agreements in a setup that is non-standard from the traditional trade policy point of view. We show that in a New Keynesian model, unilateral trade liberalization reduces welfare due to terms-of-trade deterioration, creating an incentive for a trade agreement. For realistic parameter values, the value of an agreement, which cuts tariffs by one percentage point, is 0.5% to 2% of consumption, much larger than in trade models. The intuition for this result hinges on some New Keynesian features of our framework, such as imperfect competition and endogenous labor supply
Beschreibung:	1 Online-Ressource (35 p)
ISBN:	1498372678 9781498372671

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spelling	Ganelli, Giovanni Verfasser aut Value of WTO Trade Agreements in a New Keynesian Model Ganelli, Giovanni Washington, D.C International Monetary Fund 2015 1 Online-Ressource (35 p) txt rdacontent c rdamedia cr rdacarrier IMF Working Papers: Working Paper No. 15 / 37 We revisit the question of the quantitative benefits of WTO trade agreements in a setup that is non-standard from the traditional trade policy point of view. We show that in a New Keynesian model, unilateral trade liberalization reduces welfare due to terms-of-trade deterioration, creating an incentive for a trade agreement. For realistic parameter values, the value of an agreement, which cuts tariffs by one percentage point, is 0.5% to 2% of consumption, much larger than in trade models. The intuition for this result hinges on some New Keynesian features of our framework, such as imperfect competition and endogenous labor supply Online-Ausg Tervala, Juha Sonstige oth http://www.elibrary.imf.org/view/IMF001/22374-9781498372671/22374-9781498372671/22374-9781498372671.xml Verlag URL des Erstveröffentlichers Volltext
spellingShingle	Ganelli, Giovanni Value of WTO Trade Agreements in a New Keynesian Model
title	Value of WTO Trade Agreements in a New Keynesian Model
title_auth	Value of WTO Trade Agreements in a New Keynesian Model
title_exact_search	Value of WTO Trade Agreements in a New Keynesian Model
title_exact_search_txtP	Value of WTO Trade Agreements in a New Keynesian Model
title_full	Value of WTO Trade Agreements in a New Keynesian Model Ganelli, Giovanni
title_fullStr	Value of WTO Trade Agreements in a New Keynesian Model Ganelli, Giovanni
title_full_unstemmed	Value of WTO Trade Agreements in a New Keynesian Model Ganelli, Giovanni
title_short	Value of WTO Trade Agreements in a New Keynesian Model
title_sort	value of wto trade agreements in a new keynesian model
url	http://www.elibrary.imf.org/view/IMF001/22374-9781498372671/22374-9781498372671/22374-9781498372671.xml
work_keys_str_mv	AT ganelligiovanni valueofwtotradeagreementsinanewkeynesianmodel AT tervalajuha valueofwtotradeagreementsinanewkeynesianmodel

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