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What is Economic Analysis of C-TPAT Program about?

This document analyzes the Customs-Trade Partnership Against Terrorism (C-TPAT) program through an economic model. It finds that for a given inspection capacity, C-TPAT reduces costs for both trading firms and the government by incentivizing private firms to improve supply chain security. However, the program does not achieve an optimal economic outcome due to its inability to base agreements on actual terrorist incidents. The analysis also shows that the level of firm participation in C-TPAT increases as r

Author

MEDA1918

Language

EN