Laborde, DavidMartin, Willvan der Mensbrugghe, Dominique2012-03-192012-03-192011-05-01https://hdl.handle.net/10986/3428Traditional weighted-average measures of trade distortions are widely used in analyzing global and regional reforms, despite well-known deficiencies. This paper develops and applies optimal aggregators for the real-world case of multiple countries and commodities with much more detailed information on trade than on production and consumption. The approach reflects the fact that different aggregators are needed for expenditure on imported goods and for tariff revenues, and allows for incorporation of both intensive and extensive margins of adjustment to reform. Applications confirm that the technique is straightforward enough for widespread use, and point to close to a doubling of the welfare gains at the intensive margin when using the highest possible level of international commodity disaggregation, with larger gains in developing regions than in the industrial countries. The measured income gains increase along the entire path of liberalization, with slightly larger increases in the earlier stages, where the gaps between the responses of the expenditure and tariff revenue aggregators are largest. Sensitivity analysis suggests that, for global trade reform, the ease of substitution between tariff lines is much more important than that between varieties from different countries.CC BY 3.0 IGOACCOUNTINGADVERSE IMPACTSAGRICULTURAL TRADEAGRICULTUREAPPARELAPPLIED STUDIESAPPLIED TARIFFAVERAGE TARIFFAVERAGE TARIFFSBENEFITS OF TRADEBILATERAL TARIFFSBORDER PROTECTIONBUDGETINGCAPITAL GOODSCONSTANT ELASTICITY OF SUBSTITUTIONCOUNTRY OF ORIGINDEMAND ELASTICITIESDEVELOPING COUNTRIESDEVELOPMENT POLICYDOMESTIC DEMANDDOMESTIC PRICEECONOMETRIC ANALYSISECONOMIC EFFICIENCYECONOMIC INTEGRATIONECONOMIC MODELSECONOMIC WELFAREELASTICITYELASTICITY OF SUBSTITUTIONEXPENDITUREEXPENDITURESEXPORT MARKETSEXPORT VOLUMEEXPORTERSEXPORTSFEDERAL RESERVEFEDERAL RESERVE BANKFREE TRADEFREE TRADE AGREEMENTSFULL LIBERALIZATIONGDPGENERAL EQUILIBRIUM ANALYSISGENERAL EQUILIBRIUM MODELGENERAL EQUILIBRIUM MODELINGGLOBAL COMPUTABLE GENERAL EQUILIBRIUMGLOBAL TRADEGLOBAL TRADE ANALYSISGLOBALIZATIONHIGH TARIFFSIMPORT PRICESIMPORT QUANTITIESIMPORT VOLUMESINCOME TAXESINTERNATIONAL BANKINTERNATIONAL ECONOMICSINTERNATIONAL PRICESINTERNATIONAL TRADELAFFER CURVELOW TARIFFSMARKET ACCESSMIDDLE INCOME COUNTRIESNATURAL RESOURCESOPEN ECONOMYPREFERENTIAL ACCESSPREFERENTIAL TARIFFSPRICE INDEXPRODUCTION FUNCTIONPROTECTION RATESPROTECTIONISTRATES OF PROTECTIONREAL GDPREAL INCOMEREDUCTION IN TARIFFSRETURNRETURNSREVENUE CURVESET OF TARIFFSTARIFF CHANGESTARIFF LINESTARIFF PREFERENCETARIFF PREFERENCESTARIFF PROTECTIONTARIFF RATETARIFF RATESTARIFF REDUCTIONTARIFF REDUCTIONSTARIFF REVENUETARIFF REVENUESTARIFF STRUCTURETERMS OF TRADETERMS OF TRADE EFFECTSTERMS-OF-TRADE GAINSTRADE BARRIERSTRADE COSTSTRADE DISTORTIONSTRADE FLOWSTRADE LIBERALIZATIONTRADE LIBERALIZATIONSTRADE LOSSESTRADE POLICYTRADE REFORMTRADE REFORMSTRADE VOLUMESTRADINGTRADING PARTNERSTRUST FUNDUTILITY FUNCTIONUTILITY FUNCTIONSVALUE OF IMPORTSVECTOR OF TARIFFWELFARE GAINSWELFARE IMPACTSWORLD PRICESWTOWorld Bank10.1596/1813-9450-5665