Tariff-based product-level trade elasticities

Fontagné, Lionel; Guimbard, Houssein; Orefice, Gianluca

Fontagné, Lionel; Guimbard, Houssein; Orefice, Gianluca (2022), Tariff-based product-level trade elasticities, Journal of International Economics, 137, p. 103593. 10.1016/j.jinteco.2022.103593

Type

Article accepté pour publication ou publié

Date

2022

Journal name

Journal of International Economics

Volume

137

Publisher

Elsevier

Pages

103593

Centre d'économie de la Sorbonne [CES]
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Centre de recherche de la Banque de France
Department of Economics
Paris Jourdan Sciences Economiques [PJSE]
Théorie économique, modélisation et applications [THEMA]
Guimbard, Houssein
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Orefice, Gianluca
Centre d'Etudes Prospectives et d'Informations Internationales [CEPII]
Laboratoire d'Economie de Dauphine [LEDa]

Abstract (EN)

Trade elasticity which varies widely across products is a crucial parameter in evaluating the welfare impacts of changes in trade frictions. We estimate trade elasticities at the product level by exploiting the variation in bilateral tariffs for each product category for the universe of country pairs over the 2001 to 2016 period. The predicted trade flows using the product-specific trade elasticities estimated here match the observed post-EPA import between the US and Chile, confirming the accuracy of our estimates.

Subjects / Keywords

Trade elasticity; International trade; Tariffs; Welfare gains

JEL

F14 - Empirical Studies of Trade
F17 - Trade Forecasting and Simulation