NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Consistent Trade Policy Aggregation

James E. Anderson

NBER Working Paper No. 14046
Issued in May 2008
NBER Program(s):   ITI

Most empirical policy work requires the aggregation of policies. Trade policy aggregation exemplifies the aggregation problem poignantly, with thousands of highly dispersed trade barriers. This paper provides methods of policy aggregation that are consistent with two common objectives of empirical work. One is to preserve real income. The other is to preserve the real volume of activity in the parts of the economy being aggregated. Both objectives must be achieved for consistent multi-country policy modeling. An application to India shows that the standard atheoretic method of aggregation overstates India's real income by around 3 times the global gains from free trade.

download in pdf format
   (160 K)

email paper

This paper is available as PDF (160 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w14046

Published: James E. Anderson, 2009. "Consistent Trade Policy Aggregation," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 50(3), pages 903-927, 08. citation courtesy of

Users who downloaded this paper also downloaded these:
Anderson w14642 Gravity, Productivity and the Pattern of Production and Trade
Anderson w14045 Does Trade Foster Contract Enforcement?
Anderson w16576 The Gravity Model
Anderson and Yotov w14423 The Changing Incidence of Geography
Baldwin w15397 U.S. Trade Policy Since 1934: An Uneven Path Toward Greater Trade Liberalization
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us