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The Armington General Equilibrium Model: Properties, Implications and Alternatives

Staff working paper

This paper by Xiao-Guang Zhang was released 27 February 2008.

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Preface, Acknowledgments, Abbreviations, Overview

1 Introduction
1.1 Understanding the Armington Model
1.2 Purpose
1.3 Scope
1.4 Outline

2 General equilibrium properties of the Armington model
2.1 Comparison of model structure
2.2 Free trade equilibrium with unitary Armington elasticities
2.3 Free trade equilibrium with other Armington elasticities
2.4 The Armington model and basic trade theorems

3 Implications for policy analysis
3.1 Properties of tariff-distorted equilibria
3.2 Implications for welfare measurement

4 Existing alternatives to the Armington model
4.1 Inter-industry trade models
4.2 Other intra-industry trade models

5 A hybrid model: the A-H-O model
5.1 The need for a hybrid model
5.2 An Armington-Heckscher-Ohlin model

6 Concluding remarks

A The Heckscher-Ohlin model
A.1 Autarkic equilibrium
A.2 Free trade equilibrium
A.3 Integrated equilibrium