|||2004), an extension<br>of the GTAP model<br>(Hertel, 1997)|and of unskilled workers<br>within agriculture;<br>GTAP elasticities of<br>substitution between<br>imports and domestic<br>products|textiles and apparel in US<br>and EU and agricultural<br>subsidies in China,<br>efficiency gains in<br>automobile sector and<br>cross-border trade in<br>services|
|---|---|---|---|---|
|Walmsley<br>and<br>Hertel<br>(2001)|35%<br>cumulative<br>percentage<br>point increase<br>relative<br>to<br>baseline<br>(2000-2005)|Recursive dynamics<br>with adaptive<br>expectations and<br>endogenous capital<br>stock in GDyn<br>documented in<br>Ianchovichina and<br>Walmsley (2012)|Perfect competition,<br>fixed propensity to save,<br>CET function between<br>value added and<br>aggregate inputs, fixed<br>full employment, perfect<br>mobility of skilled and<br>unskilled labor across<br>sectors but not across<br>regions, international<br>capital mobility and<br>ownershi|<br>Version 4 GTAP Database<br>aggregated into 19 regions<br>and 22 sectors; 11.2%<br>reduction in average<br>tariffs between 2000 and<br>2005, removal of quotas<br>on textiles and apparel in<br>US and EU and<br>agricultural subsidies in<br>China|
|Yang (1996)|30%<br>cumulative<br>percentage<br>point increase<br>relative<br>to<br>baseline<br>(1992-2005)|Static capital market<br>closure with fixed<br>capital stock in<br>GTAP, documented<br>in Hertel (1997)|p<br>Perfect competition,<br>fixed propensity to save,<br>CET function between<br>value added and<br>aggregate inputs, fixed<br>full employment, perfect<br>mobility of skilled and<br>unskilled labor across<br>sectors, but not across<br>regions|Version 2 GTAP Database<br>aggregated to 6 regions<br>and 32 commodities; 26%<br>cut in tariffs (including<br>equivalent quantitative<br>restriction); 24% reduction<br>in export subsidies; 15%<br>reduction in domestic<br>support between 1992-<br>2005; removal of quotas<br>on textiles and apparel in<br>US and EU|
|Yang (1996)|35%<br>cumulative<br>percentage<br>point increase<br>relative<br>to<br>baseline<br>(1992-2005)|Static capital market<br>closure with fixed<br>capital stock in<br>GTAP, documented<br>in Hertel (1997)|Perfect competition,<br>fixed propensity to save,<br>CET function between<br>value added and<br>aggregate inputs, fixed<br>full employment, perfect<br>mobility of skilled and<br>unskilled labor across<br>sectors, but not across<br>regions|<br>Version 2 GTAP Database<br>aggregated to 6 regions<br>and 32 commodities; 36%<br>cut in tariffs (including<br>equivalent quantitative<br>restriction); 36% reduction<br>in export subsidies; 20%<br>reduction in domestic<br>support; removal of quotas<br>on textiles and apparel in<br>US and EU|
|Yang (1996)|81%<br>cumulative<br>percentage<br>point increase<br>relative<br>to<br>baseline<br>(1992-2005)|Static capital market<br>closure with fixed<br>capital stock in<br>GTAP, documented<br>in Hertel (1997)|Perfect competition,<br>fixed propensity to save,<br>CET function between<br>value added and<br>aggregate inputs, fixed<br>full employment, perfect<br>mobility of skilled and<br>unskilled labor across<br>sectors, but not across<br>regions|<br>Version 2 GTAP Database<br>aggregated to 6 regions<br>and 32 commodities; cuts<br>in tariffs to a maximum of<br>10% resulting in bigger<br>cuts and reduction tariff<br>variation; 24% reduction<br>in export subsidies; 15%<br>reduction in domestic<br>support; removal of quotas<br>on textiles and apparel in<br>US and EU|

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