Cheong, Juyoung; Takayama, Shino; Yeo, Terence - School of Economics, University of Queensland - 2013
This paper studies the welfare effects of a preferential trade agreement (PTA) within a general equilibrium framework following Eaton and Kortum (2002) and conducts a comparative statics analysis of the equilibrium. The paper provides a closed-form analysis with no assumption of balanced trade...