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...
Saved in:
| Main Author: | |
|---|---|
| Format: | Electronic eBook |
| Language: | English |
| Published: |
Washington, D.C
International Monetary Fund
2015
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| Series: | IMF Working Papers: Working Paper No. 15 / 37
|
| Online Access: | UBW01 UEI01 LCO01 SBR01 UER01 SBG01 UBG01 FAN01 UBT01 FKE01 UBY01 UBA01 FLA01 UBM01 UPA01 UBR01 FHA01 FNU01 BSB01 TUM01 Volltext |
| Summary: | 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 |
| Physical Description: | 1 Online-Ressource (35 p) |
| ISBN: | 1498372678 9781498372671 |
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| illustrated | Not Illustrated |
| index_date | 2024-07-03T20:13:36Z |
| indexdate | 2024-07-10T09:35:46Z |
| institution | BVB |
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| language | English |
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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 |
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