We note that calibration parameters in a multi-country Armington trade model play a role similar to that of econometric residuals: they allow the model to fit the data exactly. We use this premise to evaluate the "fit" of a standard multi-country computable general-equilibrium model. We find...

This paper reconsiders the Canada-US border's effect on trade. We first test whether findings of McCallum (1995) and Helliwell (1995)--that the border substantially decreases trade--change when different, better, data are used. We find that the "border effect" may be substantially less than...

We note that calibration parameters in a multi-country Armington trade model play a role similar to that of econometric residuals: they allow the data to fit the model exactly. We use this premise to evaluate the 'fit' of a standard multi-country computable general equilibrium (CGE) model. We...