Abstract:
Interest rate
Ad valorem
tariffs are considered as the most prominent trade
tools
extensively used in the framework of Spatial Equili
brium Models (SEMs) to analyze
agricultural and food trade policies around the wor
ld. However the results obtained from
such models have been criticized because of their i
nadequacy in producing any observed
data within the base period. Hence a positive spati
al and temporal trade model which
incorporates
ad valorem
tariffs was developed throughout the ongoing study
. The
calibrated model helps researchers to perform a sub
stantially flawless empirical trade
study in the real world. A numerical example is fin
ally presented at the end of the article
to justify the findings of the model, and to compar
e welfare analysis of the calibrated
vs.
the uncalibrated model.
Keywords:
Ad valorem
Tariff, Agricultural Trade Model,
Calibration, Spatial Equilibrium
Mode
