02429cas a2200325 a 4500 AALejournalIMF021341 230101c9999 xx r poo 0 0eng d 5.00 USD 9781513561615 1018-5941 BD-DhAAL BD-DhAAL Hunt, Benjamin. Modeling Trade Tensions : Different Mechanisms in General Equilibrium / Benjamin Hunt, Susanna Mursula, Rafael Portillo, Marika Santoro. Washington, D.C. : International Monetary Fund, 2020. 1 online resource (42 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students In this paper, we investigate the mechanisms through which import tariffs impact the macroeconomy in two large scale workhorse models used for quantitative policy analysis: a computational general equilibrium (CGE) model (Purdue University GTAP model) and a multi-country dynamic stochastic general equilibrium (DSGE) model (IMF GIMF model). The quantitative effects of an increase in tariffs reflect different mechanisms at work. Like other models in the trade literature, in GTAP higher tariffs generate a loss in terms of output arising from an inefficient reallocation of resources between sectors. In GIMF instead, as in other DSGE models, tariffs act as a disincentive to factor utilization. We show that the two models/channels can be broadly interpreted as capturing the impact of tariffs on different components of a country's aggregate production function: aggregate productivity (GTAP) and factor supply/utilization (GIMF). We discuss ways to combine the estimates from these two models to provide a more complete assessment of the macro effects of tariffs. Mode of access: Internet General Equilibrium imf Nominal and Real Rigidities imf Trade Elasticity imf Trade Policy imf Mursula, Susanna. Portillo, Rafael. Santoro, Marika. IMF Working Papers; Working Paper ; No. 2020/279 Full text available on IMF http://elibrary.imf.org/view/journals/001/2020/279/001.2020.issue-279-en.xml IMF e-Library