An Inquiry on General Equilibrium Effects of MERCOSUR — An Intertemporal World Model

@inproceedings{Diao2000AnIO,
  title={An Inquiry on General Equilibrium Effects of MERCOSUR — An Intertemporal World Model},
  author={X. D. Diao and Agapi L. Somwaru},
  year={2000}
}
A multiregion dynamic computable general equilibrium model is constructed to analyze effects of the Southern Common Market (MERCOSUR) on the member countries as well as third-party nonmember countries. The model is based on intertemporal optimization behaviors of consumers and firms with eight endogenously specified regions. By taking into account dynamic general equilibrium adjustments, we observe significant shifts of trade diversion away from the nonmember trading partners to the member… CONTINUE READING
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