We use detailed tariff data and a dynamic trade and reallocation model with downward nominal wage rigidities to quantitatively assess the economic consequences of the recent increase in U.S. import tariffs and the responses of its trading partners. Higher tariffs trigger an expansion in U.S....

We use detailed tariff data and a dynamic trade and reallocation model with downward nominal wage rigidities to quantitatively assess the economic consequences of the recent increase in U.S. import tariffs and the responses of its trading partners. Higher tariffs trigger an expansion in U.S....

This paper studies tariff-tax reforms in a calibrated two-region global New Keynesian model composed of a developing and an advanced region. In our baseline calibration, a revenue-neutral reform that lowers tariffs in developing countries can reduce domestic welfare. The reason is that the...

U.N. Commodity Trade (COMTRADE) statistics have major shortcomings for many analyses relating to tariffs and other trade barriers. The use of a cost-insurance-freight valuation base for these data results in an upward (sometimes severe) bias in the implied dutiable value of imports for countries...

This paper uses the 1991 Indian trade liberalization to measure the impact of trade liberalization on poverty, and to examine the mechanisms underpinning this impact. Variation in sectoral composition across districts and liberalization intensity across production sectors allows a...

Many trade negotiations involve large cuts in high tariffs, while allowing smaller cuts for an agreed share of politically sensitive products. The effects of these flexibilities on market access opportunities are difficult to predict, creating particular problems for developing countries in...

In most macroeconomic models, the substitutability between domestic and foreign goods is calibrated using aggregated data. This imposes homogeneous elasticities across goods, and the calibration is only valid under this assumption. If elasticities are heterogeneous, the aggregate...