Exercise: How Tariffs Work

Download instructions for this hands-on exercise here:   How Tariffs Work (PDF document422.4 KB)

Summary:

In this exercise, you will learn how to change an import tariff in the UNI-CGE model for a single commodity. You will learn to use trade theory as a guide to identify the most relevant results and check whether the outcome of your experiment is consistent with theory. You can then use the ideas from theory to explain the results of your experiment to your audience.

You will also examine general equilibrium effects from a change in one tax rate, including the effects on other industries' output and exports, government tax revenue, the balance of trade and the exchange rate. 

The experiment uses India as a case study.  You will remove the import tariff on India's agri-food sector. 




Last modified: Wednesday, 18 September 2024, 6:15 PM