Objective
Trade policy is increasingly used as a strategic instrument to advance a wide range of national objectives, not only market access and competitiveness, but also supply security, resilience, strategic industries, and broader national interest goals. Governments face overlapping priorities such as managing trade imbalances, responding to shocks, and designing targeted tariff and non-tariff measures (NTMs) that align with domestic policy constraints and international commitments.
The GTAP Modeling Trade Policy (MTP) Course is designed to provide professionals and students with hands-on, applied training in the analysis of modern trade policy using the GTAP computable general equilibrium model (version 7). The course provides participants with an opportunity to develop practical skills in the design of policy experiments, the implementation of changes in tariff and non-tariff barriers, and the interpretation of model results for policy-relevant insights. The curriculum emphasizes an intuitive treatment of core economic theory, and provides structured, guided experience in running the standard GTAP Model within the RunGTAP software environment. Learning culminates in team-based research projects in which participants frame a real-world policy question, implement the relevant tariff and NTM scenarios, and communicate results in a way that supports decision-making. By the end of the course, participants will have strengthened their applied capacity to assess the economy-wide and sectoral implications of tariff and non-tariff policy options, including preferential trade agreement- style (PTA) liberalization scenarios or tariff hikes where relevant, within a broader trade policy context.
During the online course, participants will:
- consider the potential impacts of trade policies, including on GDP, trade, factors of production and sectoral production – connecting applied model results to trade theories
- operationalize the modelling of different aspects of trade policies within the GTAP CGE model, including tariff and non-tariff barriers
- learn about different approaches to modelling non-tariff measures and their implications for importing and exporting countries
- learn how to interpret general equilibrium model results, including the impact of alternative closures
Structure
The course is delivered fully online and supported by the textbook, Introduction to Computable General Equilibrium Models, 3e, the eBook version of which, as well as all other necessary course software and materials, will be provided to participants. Since participants will be located all around the world, there are no set meeting times for the course, but instructors may schedule periodic, online check-in sessions as needed. Learning and communication take place through active discussions among the participants and instructors, which are carried out as asynchronous, threaded conversations on the classroom bulletin board, and through virtual team work on collaborative projects and online meetings facilitated by the instructors.
Content Overview
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Week 1 - "Getting Started"
- Participants download and familiarize themselves with the course website, material, and software
- Participants are encouraged to review materials on the RunGTAP software
- Review uploading a version in RunGTAP and viewing the database
- Review how to construct a numeraire experiment in RunGTAP
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Week 2 - "Analysis of trade policies and Tariffs"
- Understand the welfare effects of trade taxes
- Learn to construct a simple tariff experiment and view results
- Learn to construct a PTA experiment in which bilateral tariffs are eliminated
- Learn to identify trade creation and trade diversion
- Learn to analyze the results of a PTA experiment by examining some of the key variables and tracing through the impacts using AnalyseGE
- Learn to implement and analyze the results of a closure swap
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Week 3 - "NTMs in GTAP"
- Learn about econometric approaches to estimating the AVEs of NTMs
- Learn how to incorporate the AVE of an NTM into the GTAP Data Base using Altertax
- Learn how to use subtotals to decompose and compare results
- Learn to construct an experiment in which NTMs are reduced in RunGTAP
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Weeks 4 - "New Approaches"
- Learn about the alternative mechanisms used for depicting NTMs in the standard GTAP Model
- Compare alternative modelling mechanisms and their implications for assessing the effects of reductions in NTMs
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Weeks 5-6 - "Group Research Project"
- As part of the research project participants will be provided a GTAP Data Base aggregation and will develop their own questions, shocks, closure and applications. Participants are encouraged to ask questions, try out various tools and think critically about their scenarios.
- Participants are encouraged to bring their own ideas, as well as look at various papers to get a feel for what a good CGE analysis entails.
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Week 7 - "Wrap-Up and Evaluation"
Time Commitment
Participants should expect to spend approximately 10-12 hours/week on this course.
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