Trade Policy Simulation
Computable General Equilibrium analysis of trade policy shocks on Bangladesh. Run counterfactual scenarios and examine welfare, wage, and trade share effects across 13 sectors and 9 regions.
Methodology
Model
Ricardian multi-sector general equilibrium model with Eaton-Kortum gravity, input-output linkages, and exact hat algebra (Caliendo and Parro, 2015, Review of Economic Studies).
Data
Calibrated on OECD Inter-Country Input-Output tables (2025 edition). 50 industries and 85 countries aggregated to 13 sectors and 9 regions for Bangladesh policy analysis.
Elasticities
Sector-specific trade elasticities from Caliendo and Parro (2015), Table 1. Range from 2.55 (Food) to 15.72 (Extractives). RMG: 5.56.
Select a Scenario
Trade Elasticities (Caliendo-Parro 2015)
| Sector | Elasticity (theta) |
|---|
Source: Caliendo, L. and Parro, F. (2015), "Estimates of the Trade and Welfare Effects of NAFTA", Review of Economic Studies, 82(1), 1-44, Table 1.