Value of WTO Trade Agreements in a New Keynesian Model /

We revisit the question of the quantitative benefits of WTO trade agreements in a setup that is non-standard from the traditional trade policy point of view. We show that in a New Keynesian model, unilateral trade liberalization reduces welfare due to terms-of-trade deterioration, creating an incent...

Szczegółowa specyfikacja

Opis bibliograficzny
1. autor: Ganelli, Giovanni
Kolejni autorzy: Tervala, Juha
Format: Czasopismo
Język:English
Wydane: Washington, D.C. : International Monetary Fund, 2015.
Seria:IMF Working Papers; Working Paper ; No. 2015/037
Dostęp online:Full text available on IMF
LEADER 01720cas a2200253 a 4500
001 AALejournalIMF015042
008 230101c9999 xx r poo 0 0eng d
020 |c 5.00 USD 
020 |z 9781498372671 
022 |a 1018-5941 
040 |a BD-DhAAL  |c BD-DhAAL 
100 1 |a Ganelli, Giovanni. 
245 1 0 |a Value of WTO Trade Agreements in a New Keynesian Model /  |c Giovanni Ganelli, Juha Tervala. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2015. 
300 |a 1 online resource (35 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a We revisit the question of the quantitative benefits of WTO trade agreements in a setup that is non-standard from the traditional trade policy point of view. We show that in a New Keynesian model, unilateral trade liberalization reduces welfare due to terms-of-trade deterioration, creating an incentive for a trade agreement. For realistic parameter values, the value of an agreement, which cuts tariffs by one percentage point, is 0.5% to 2% of consumption, much larger than in trade models. The intuition for this result hinges on some New Keynesian features of our framework, such as imperfect competition and endogenous labor supply. 
538 |a Mode of access: Internet 
700 1 |a Tervala, Juha. 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2015/037 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2015/037/001.2015.issue-037-en.xml  |z IMF e-Library