@article{Döbeling:333462,
      recid = {333462},
      author = {Döbeling, Tatjana},
      title = {Modeling the interactions of complex tariff regimes},
      address = {2022},
      pages = {6},
      year = {2022},
      note = {Presented at the 25th Annual Conference on Global Economic  Analysis (Virtual Conference)},
      abstract = {Complex tariff structures impose challenges to model-based  policy analysis. Real-world tariff structures are rather  complex, with not only ad valorem tariffs in place but also  specific tariffs as well as tariff-rate quotas (TRQs).  While ad valorem tariffs express the duty as a percentage  share of the value (i.e. 7%), specific tariffs add an  absolute value to be paid per volume, quantity, fat  content, or other properties (i.e. 10€/ton). Tariff-rate  quotas are two-tied systems that offer a reduced tariff for  a certain contingent, i.e. 3000 tons of duty-free exports,  while a higher tariff is applied to all imports beyond  those first 3000 tons. Within model-based policy analysis,  ad valorem equivalent tariffs (AVEs) are used to sum up the  effects of different sorts of tariffs, which is then much  easier to handle and aggregate in CGE models. As the effect  of these tariffs on import quantities, welfare, and trade  distortion can however differ and not all these differences  are captured within the ad valorem equivalent tariff,  modeling their precise mechanisms would be worthwhile. The  matter becomes even more complex when TRQs, ad valorem  tariffs, and specific tariffs interact. For instance,  several empirical studies have shown that quantitative  import restrictions cause a rise in import prices. Also  theoretically, it could be shown why quantitative  restrictions systematically give an advantage to more  expensive commodities. The theoretical argumentation,  however, depends on the sort of tariff that is to be paid  outside the quota. We include an endogenous quota license  allocation within a complex tariff structure, thereby  allowing a projection of trade regimes in which  quantitative restrictions and their trade-distorting  effects, ad valorem tariffs, and specific tariffs are all  included at once for the same group of commodities. We  implement this in the CGEbox, a flexible, extendable, and  modular code basis for CGE modeling in GAMS drawing on the  GTAP database.},
      url = {http://ageconsearch.umn.edu/record/333462},
}