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- W1497281666 abstract "This paper explores systematically the relationship between the domestic and foreign price systems when domestically produced and foreign produced goods are imperfect substitutes in use, which is the specification of foreign trade most commonly adopted in computable general equilibrium trade models. The paper shows that domestically produced goods are characterized by a continuum of tradability rather than being arbitrarily classified as traded or nontraded. Expressions are derived that indicate the factors affecting the degree of autonomy of domestic prices to changes in import and export prices and, hence, delineate the degree of trade dependence of the domestic price system. The analysis suggests that the small magnitudes reported on the welfare gains from tariff reduction in these models are due to this specification since it gives great autonomy to the domestic price system." @default.
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- W1497281666 date "1985-07-01" @default.
- W1497281666 modified "2023-09-23" @default.
- W1497281666 title "Product differentiation and trade dependence of the domestic price system in computable general equilibrium trade models" @default.
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