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Abstract

This paper offers a possibility of bringing household analysis into Computable General Equilibrium (CGE) modelling. In this research, the CGE model developed by the Global Trade Analysis Project (GTAP) is extended. The extended GTAP model splits private consumption into ten different household categories according to observed expenditure patterns for Mexico. The extended model is used to simulate possible effects on Mexican household categories which are carried out under three different trade liberalization scenarios.

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