文摘
Mixed complementarity programming is used to solve a 21-region, global trade model, calibrated to 2011 bilateral trade The model examines the effects of the tariff rate quota used in the 2006 Softwood Lumber Agreement (SLA) It is estimated that the SLA created an annual deadweight loss of $28 million, paid by U.S. consumers The lack of a proper mechanism for capturing quota rent creates incentives for high cost Canadian firms In the absence of SLA, it is estimated that Alberta would supply an additional 9% of Canadian softwood lumber to the U.S.