To analyze the effects of prospective policy changes, sectoral and economy-wide modelers need to begin with baseline … economy theory, a set of political econometric equations and knowledge of current World Trade Organization (WTO)-bound tariffs …

then presents two applications. The first is a closed-economy model, calibrated for Germany, that features idiosyncratic … turn to an open-economy model, featuring five regions (the US, Europe, Japan and other Asian countries, China, and India …