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Finally, the goods market clear, so that total output equals final demand plus inter- mediate input usage, ys i = cs i + N ∑ n=1 Z ms ni(ωs)dωs

πs inXs i τs ij , (43) where equation (43) is the CP model counterpart of equation (21), to write the aggregate trade imbalance as Di = S ∑ s=1 J ∑ j=1 πs inXs i τs ij − J ∑ j=1 πs jnXs i τs ji ! , (44) where equation (44) is the CP mod · 2015

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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 7

    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.