How Prescribed Policy Can Mislead When Data Are Defective: A Follow-up to Srinivasan (1994) Using General Equilibrium

Pubblico
Creator Series Issue number
  • 207
Date Created
  • 1996-02
Abstract
  • We highlight an example of considerable bias in officially published input-output data (factor-income shares) by an LDC (Turkey), which many researchers use without question. We make use of an intertemporal general equilibrium model of trade and production to evaluate the dynamic gains for Turkey from currently debated trade policy options and compare the predictions using conservatively adjusted, rather than official, data on factor shares. We show that the predicted welfare gains are not only of a different order of magnitude, but in some cases, of a different sign, hence, suggesting contradictory policy recommendations.

Corporate Author
  • Federal Reserve Bank of Minneapolis. Research Department
Publisher
  • Federal Reserve Bank of Minneapolis
Resource type DOI
License

Le relazioni

In Collection:
Ultima modifica

Contenuto scaricabile

Scarica il pdf

Zipped Files

Download a zip file that contains all the files in this work.

Elementi