Files
Abstract
Aziz Elbehri and Ken Pearson supplied an approach to implement tariff-rate quotas in the general equilibrium model of the Global Trade Analysis Project (GTAP). For each traded good a tariff-rate quota can be introduced whereby good refers to a sector of the GTAP data base. If a sector contains several tariff lines, which may have their own tariff-rate quota regimes, an aggregation is needed leading to a sector-wide tariff-rate quota. In the paper two alternative aggregation methods are suggested considering either magnitude of tariffs or sector-wide quota rent. In an example both aggregation methods are applied to show the impact on model results.