Edward Tower,John Gilbert

Introduction to Numerical Simulation for Trade Theory and Policy

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This volume provides a practical guide to building and using simulation models for international trade theory and policy. Through a sequence of carefully constructed and fully documented programs, the volume illustrates how numerical simulation can be used to analyze a wide array of problems. Modern computable general equilibrium (CGE) models for trade policy are challenging in their complexity, but can be thought of as constructions of much simpler building blocks. By developing the building blocks in a consistent manner, and gradually putting them together in more complex and interesting ways, the volume makes CGE accessible to anyone with a background in microeconomics/trade theory. The volume will be useful to graduate students and researchers in international trade looking for a detailed guide to building simulation models and to developing the skill set necessary to enter into the world of CGE modeling.
Contents:IntroductionGetting Started With GAMSTheory of Consumption, Production and Trade:Utility MaximizationCost MinimizationLong-Run ProductionShort-Run ProductionDual ApproachTransitionHigher DimensionsAutarky Small Country Trading EquilibriumNon-traded GoodsLarge Country Trading EquilibriumTwo Country Trading EquilibriumHigher Dimensions and TradeReciprocal DumpingMonopolistic CompetitionCommercial Policy and Distortions:Tariffs and Other Trade InterventionsDomestic Taxes and SubsidiesFactor Market DistortionsComputable General Equilibrium:Multiple Households and Other Sources of DemandArmington PreferencesJoint ProductionSocial Accounting MatricesClosureSingle Country Competitive CGEConcluding CommentsReadership: Graduate students and researchers in international trade theory and policy.
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