ECONOMIC MODELING

Large-scale computable general equilibrium (CGE) models have played an important role in legitimizing U.S. free trade agreements. These models are designed with an inherent bias towards low tariffs and high levels of imports. CPA’s work is focused on modifying these models to give a more realistic assessment of the impact of trade policies. In 2019, CPA won the Mennis Award from the National Association for Business Economics for pathbreaking work showing how a 25% tariff on all imports from China could increase U.S. gross domestic product.