A tariff index that, combined with a simple general equilibrium model, can be used to calculate more accurately how preferential tariff reductions affect sectoral output, factor prices, average tariff rates, and general welfare.Bond presents a tariff index that uses...

Purpose – This chapter examines how preferential liberalization between a pair of countries affects the terms of trade and welfare of the liberalizing countries and on the rest of the world (ROW). We adopt a model with symmetric countries that generalizes previous work by relaxing assumptions...