Browsing by Author "Deardorff, Alan V."
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Item The effect of U.S.trade laws on poverty in America(Institute of Public Policy studies , Michigan, 1991-06) Deardorff, Alan V.; Haveman, Jon D.This study examines the relationship between the application of United states trade laws, on the one hand and the distribution of income and levels of poverty in America, on the other. The use of U.S. trade laws in recent years has taken the form of ''administered protection'' whereby industries are able to seek protection from imports on the grounds that they are being injured by imports or that they are subject to unfair competition from abroad. This study draws upon a trade action inventory that has been compiled on the actions that sought protection and whether they received it. By comparing the experiences of these industries under the trade laws with the poverty rates, wage levels, and rates of unemployment that are associated with these industries or the regions in which they operate, this study seeks to determine whether this protection has served to alleviate or to exacerbate poverty. The paper concludes that there is a bias inherent in the application for and administration of administered protection that tends towards increasing the incidence of poverty.Item Migrant landlords and trade in a lumpy country(Institute of Public Policy studies , Michigan, 1992-06) Courant, Paul N.; Deardorff, Alan V.Inter-regional mobility of land owner is introduced into the 2-good, 2-factor, 2-region, lumpy country model to determine the extent to which such mobility alters the effects of lumpiness on trade. As long as labour is immobile between regions,movement of landowners-in response,say,to an advantage of one region over the other in providing amenities or noncompeting nontraded goods-does not alter the pattern of trade of the country as a whole. It does however,alter the pattern of inter-regional trade within the country, with the more attractive region importing more of tradable goods and paying for them with the rental incomes of the absentee land owners who are attracted to live there. If labour is also mobile, then movement of landowners can displace, due to congestion,a portion of the labour movement that would otherwise occur, possibly reducing the likelihood that lumpiness will lead to trade. On the other hand, if labour is immobile but nontraded goods compete with traded goods for factors of production, movement of land owners may so tie up those factors in producing nontraded goods that regions are driven to specialization in traded goods.Item A north american free trade agreement: analytical issues and a computational assessment(1991-10) Brown, Drusilla K.; Deardorff, Alan V.; Stern, Robert M.Item Sectoral effects of reductions in NATO military expenditures in the major industrialized and developing countries(Institute of Public Policy studies , Michigan, 1992-01) Haveman, Jon D.; Deardorff, Alan V.; Stern, Robert M.We use the Michigan model of world production and trade to assess the sectoral effects of: (1) a 25% unilateral reduction of military expenditures in the individual NATO countries and (2)a 25% multilateral reduction of military expenditures in all of the NATO countries combined. Our principal findings suggest that the overall effects of the unilateral and multilateral reductions are not substantial and that the results of the two reductions are qualitatively similar. The sectoral results, which are also broadly similar in the two experiments, suggest that sectoral such as metal products, durable goods, and community, social and personal services might be in need of transitional adjustment assistance for displaced workers in the event that the reductions in military expenditures would in fact be carried out.Item Some estimates of a north american free trade agreement(Institute of Public Policy studies , Michigan, 1991-10) Brown, Drusilla K.; Deardorff, Alan V.; Stern, Robert M.Item Third country effects of a discriminatory tariff(Institute of Public Policy studies , Michigan, 1992-06) Deardorff, Alan V.Motivated by the interests of members of free trade areas in the trade policies undertaken by their FTA partners against outsiders, this paper conducts a partial equilibrium anlysis of the effects of a discriminatory tariff on third countries. Both competitive and segmented market models are considered, in each case using ''low order analysis'' to clarify what would otherwise be a bewildering array of possibilities. Even with that simplification, however, the results are mixed, indicating cases in which a tariff both benefits and harms third country interests. In the most general and symmetric case, the tariff tends to benefit the third country as a whole without materially damaging particular producer interests within it. However in a number of special asymmetric cases, producers, consumers and even the third country as a whole can lose from the tariff. All of this suggests the need for some coordination of external trade policies among members of an FTA.