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SOME CONCEPTUAL ISSUES IN ANALYZING THE CANADA-U.S. FREE TRADE AGREEMENT

Drusilla K. Brown, Robert M. Stern

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Abstract

We present an interpretive history of the development of the computational analysis of the Canada-U.S. FTA. Several important conceptual issues are identified, including: perfect competition and national product differentiation; imperfect competition and increasing returns to scale; tariff liberalization and monopolistic competition; adjustment and dynamic effects; macroeconomic effects; and other pertinent aspects of market structure and firm behavior.

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What this paper is about

We present an interpretive history of the development of the computational analysis of the Canada-U.S. FTA. Several important conceptual issues are identified, including: perfect competition and national product differentiation; imperfect competition and increasing returns to scale; tariff liberalization and monopolistic competition; adjustment and dynamic effects; macroeconomic effects; and other pertinent aspects of market structure and firm behavior.

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Available abstract

We present an interpretive history of the development of the computational analysis of the Canada-U.S. FTA. Several important conceptual issues are identified, including: perfect competition and national product differentiation; imperfect competition and increasing returns to scale; tariff liberalization and monopolistic competition; adjustment and dynamic effects; macroeconomic effects; and other pertinent aspects of market structure and firm behavior.

Key concepts: Free trade agreement, Economics, International economics, Free trade, International trade, Political science

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