Modelling the effects of protection in a dynamic framework

The effects of alternative trade strategies on development performance are analyzed using a small, dynamic, computable general equilibrium model. The static allocation costs of protection are quantitatively weighed against the dynamic benefits resulting from heterogenous capital goods and imperfect...

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Published in:Journal of development economics 1977-06, Vol.4 (2), p.149-172
Main Authors: De Melo, Jaime A.P., Dervis, Kemal
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Language:English
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container_title Journal of development economics
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creator De Melo, Jaime A.P.
Dervis, Kemal
description The effects of alternative trade strategies on development performance are analyzed using a small, dynamic, computable general equilibrium model. The static allocation costs of protection are quantitatively weighed against the dynamic benefits resulting from heterogenous capital goods and imperfect foresight. An attempt at quantifying the effects of protection on employment and savings behavior is made by using submodels specifying distortions in labor-markets and alternative savings functions.
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title Modelling the effects of protection in a dynamic framework
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