Friday, 10 May 2019

The effects of trade policy might be more diverse than most economists think

a column by Peter Egger and Katharina Erhardt for VOX: CEPR’s Policy Portal

When economists model changes in tariffs, their models make assumptions about the impact of those changes.

The column argues that those assumptions are often contradicted in the real world and proposes an approach that relaxes these restrictions. Estimates using this approach show that customary models may severely underestimate the impact of recent tariff increases.

Continue reading

I think I am beginning to understand about the effects of tariff changes. The thing I really like about these VOX posts is that the language is within my grasp. 


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