Two tariff aggregation extensions to global trade models are proposed, taking advantage of international trade data at the tariff line level. The proposed methods correct for typical biases in tariff aggregation. Firstly, they take into account the substitution effects in an optimal consumption bundle at the tariff line level. Secondly, they also deal with the “water” in tariffs, i.e. the imperfect transmission of tariff cuts to domestic prices. Finally, they model Tariff Rate Quotas explicitly. The aggregators are tested for Swiss tariff dismantling scenarios towards imported EU beef products, after implementing them in a partial equilibrium model of the agricultural sector.


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