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We also report the mean absolute and percentage difference between the numerical elasticities for the United States and China

The numerical elasticities are computed at the baseline, reported for eight different scenarios (whether bilateral or deficits are present, whether the benchmark has free-trade or observed tariffs) · 1998

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Trade Wars with Trade Deficits

econ.GN · 2024-11-22 · conditional · novelty 6.0

Trade deficits raise optimal tariffs by making foreign demand less elastic, and the U.S. gains from a trade war with China relative to existing tariffs but not relative to free trade.

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  • Trade Wars with Trade Deficits econ.GN · 2024-11-22 · conditional · none · ref 10

    Trade deficits raise optimal tariffs by making foreign demand less elastic, and the U.S. gains from a trade war with China relative to existing tariffs but not relative to free trade.