Nicita, AlessandroIanchovichina, ElenaSoloaga, Isidro2014-08-212014-08-212001-08https://hdl.handle.net/10986/19559The authors use a two-step, computationally simple procedure to analyze the effects of Mexico's potentially unilateral tariff liberalization. First, they use a computable general equilibrium model provided by the Global Trade Analysis Project (GTAP) as the new price generator. Second, they apply the price changes to Mexican household data to assess the effects of the simulated policy on poverty and income distribution. By choosing GTAP as the price generator, the authors are able to model Mexico's differential tariff structure appropriately: almost zero for North American Free Trade Agreement (NAFTA) members and higher tariffs for nonmembers. Even starting with low tariff protection, simulation results show that tariff reform will have a positive effect on welfare for all expenditure deciles. Under an assumption of nonhomothetic individual preferences, trade liberalization benefits people in the poorer deciles more than those in the richer ones.en-USCC BY 3.0 IGOABATEMENTADJUSTMENT COSTSADJUSTMENT POLICIESADJUSTMENT PROGRAMSAGGREGATE INCOMEAGGREGATE LEVELAGRICULTURAL ECONOMICSAGRICULTUREAVERAGE INCOMECAPITALCIVIL SOCIETYCOMMODITIESCONSUMERSCONSUMPTION LEVELSDATA SETDECOMPOSABLE POVERTY MEASURESDESCRIPTIVE STATISTICSDEVELOPING COUNTRIESDEVELOPMENT ECONOMICSDEVELOPMENT POLICYDISTRIBUTIONAL EFFECTSDISTRIBUTIONAL IMPACTDOMESTIC DEMANDECONOMIC COOPERATIONECONOMIC GROWTHECONOMIC REVIEWECONOMIC TRENDSELASTICITIESELASTICITY OF DEMANDEMPLOYMENTEQUILIBRIUMEQUIVALENT VARIATIONEXPENDITURE DATAEXPENDITURE GROUPSEXPENDITURE SURVEYEXPENDITURESEXTREME POVERTYFACTOR INCOMEFINANCIAL CRISISFISCAL POLICIESFOOD BASKETFOOD CONSUMPTIONFREE TRADEFULL EMPLOYMENTGAINGENERAL EQUILIBRIUM ANALYSISGENERAL EQUILIBRIUM MODELGINI COEFFICIENTGLOBAL TRADEGOVERNMENT EXPENDITURESHEADCOUNT INDEXHEADCOUNT RATIOHOUSEHOLD CHARACTERISTICSHOUSEHOLD CONSUMPTIONHOUSEHOLD DATAHOUSEHOLD EXPENDITURESHOUSEHOLD INCOMEHOUSEHOLD LEVELHOUSEHOLD MEMBERSHOUSEHOLD SURVEYHOUSEHOLD SURVEYSHOUSEHOLD WELFAREINCOMEINCOME DISTRIBUTIONINCOME EFFECTINCOME ELASTICITYINCOME ELASTICITY OF DEMANDINCOME GROUPSINCOME SCALEINCOME SOURCESINCREASED RETURNSINDIVIDUAL LEVELINEQUALITYINEQUALITY INDICATORSINEQUALITY MEASURESINFLATIONINFORMAL SECTORINTEREST RATELABOR MARKETSLIVING CONDITIONSLIVING STANDARDLIVING STANDARDSLONG-TERM TRENDSLOW INCOMEMACROECONOMIC FRAMEWORKMACROECONOMIC POLICIESMACROECONOMIC SHOCKSMANUFACTURING SECTORMINIMUM LEVELNATIONAL LEVELNATURAL RESOURCESNET IMPACTOPPORTUNITY COSTPER CAPITA CONSUMPTIONPER CAPITA INCOMEPER-CAPITA INCOMEPOLICY CHANGESPOLICY REFORMSPOLICY RESEARCHPOOR HOUSEHOLDSPOOR INDIVIDUALSPOPULATION SUB-GROUPSPOSITIVE EFFECTPOVERTY ALLEVIATIONPOVERTY ASSESSMENTPOVERTY ASSESSMENTSPOVERTY GAPPOVERTY INDEXESPOVERTY INDICATORSPOVERTY ISSUESPOVERTY LEVELSPOVERTY LINEPOVERTY LINESPOVERTY MEASURESPOVERTY REDUCTIONPOVERTY REDUCTION STRATEGYPRICE CHANGESPRICE ELASTICITIESPRICE INDEXESPRICE VARIATIONSPRODUCERSPUBLIC GOODSPUBLIC SECTORPURCHASING POWERREAL INCOMERURAL AREASRURAL HOUSEHOLDSRURAL POPULATIONRURAL RESIDENTSSAVINGSSKILLED LABORSTATISTICAL METHODSSTRUCTURAL ADJUSTMENTTIME FRAMETRADE LIBERALIZATIONTRADE REFORMSUNDERESTIMATESURBAN AREASURBAN HOUSEHOLDSUTILITY FUNCTIONVALUE ADDEDWAGESWEALTH10.1596/1813-9450-2667