| ID | 104338 |
| Title Proper | Economic costs to the US of closing its borders |
| Other Title Information | a computable general equilibrium analysis |
| Language | ENG |
| Author | Dixon, P B ; Giesecke, J A ; Rimmer, M T ; Rose, A |
| Publication | 2011. |
| Summary / Abstract (Note) | We use a CGE model to simulate the effects of a one-year US border closure. Relative to previously used input-output modeling, CGE modeling offers a flexible framework for capturing bottleneck and labor-market effects. Our analysis suggests that the costs of a prolonged closure could be much greater than indicated by input-output studies. We find that cutting all imports by 95% in an environment of sticky real wages would reduce GDP by 48%. However, if bottleneck imports (mainly oil) were exempt and workers accepted real wage cuts then the GDP reduction would be only 11%. |
| `In' analytical Note | Defence and Peace Economics Vol. 22, No. 1; Feb 2011: p85-97 |
| Journal Source | Defence and Peace Economics Vol. 22, No. 1; Feb 2011: p85-97 |
| Key Words | Border Closure ; Strategic Eeserves ; Bottleneck Imports ; Dynamic CGE ; Terrorism ; Pandemics |