2021
DOI: 10.1016/j.jinteco.2021.103538
|View full text |Cite
|
Sign up to set email alerts
|

How does trade respond to anticipated tariff changes? Evidence from NAFTA

Help me understand this report

Search citation statements

Order By: Relevance

Paper Sections

Select...
2
1
1

Citation Types

1
15
0

Year Published

2022
2022
2024
2024

Publication Types

Select...
6
1
1

Relationship

1
7

Authors

Journals

citations
Cited by 16 publications
(16 citation statements)
references
References 50 publications
(72 reference statements)
1
15
0
Order By: Relevance
“…21 To provide a comparison, Khan and Khederlarian (2019) estimates the counterpart to this anticipatory elasticity during the NAFTA phaseouts (when the tariff change was certain to take place) to be around 4 to 6, or two thirds of their long run trade elasticities precise. Column three is the result of estimating equation ( 5) and our baseline estimate.…”
Section: Baseline Resultsmentioning
confidence: 99%
See 2 more Smart Citations
“…21 To provide a comparison, Khan and Khederlarian (2019) estimates the counterpart to this anticipatory elasticity during the NAFTA phaseouts (when the tariff change was certain to take place) to be around 4 to 6, or two thirds of their long run trade elasticities precise. Column three is the result of estimating equation ( 5) and our baseline estimate.…”
Section: Baseline Resultsmentioning
confidence: 99%
“…Baker et al (2018) show that households increase their stocks in anticipation of a future sales tax rate increase. Khan and Khederlarian (2019) find de-stocking by US imports from Mexico to upcoming tariff reductions from NAFTA substantially biases estimates of the trade elasticity.…”
Section: Introductionmentioning
confidence: 90%
See 1 more Smart Citation
“…The recent literature on trade dynamics is rich in both substantive mechanisms and quantification (see, among many others,Costantini and Melitz, 2007;Ruhl, 2008;Burstein and Melitz, 2013;Drozd and Nosal, 2012;Alessandria, Choi, and Ruhl, 2014;Ruhl and Willis, 2017;Fitzgerald, Haller, and Yedid-Levi, 2019).3 A strand of the literature uses time series methods (most commonly Error Correction Models) to estimate timevarying trade elasticities with trade prices or trade cost changes as independent variables (e.g Hooper, Johnson, and Marquez, 2000;Gallaway, McDaniel, and Rivera, 2003;. Alessandria and Choi, 2019;Yilmazkuday, 2019;Khan and Khederlarian, 2020). Our work builds on this line of research by tackling tariff endogeneity, using flexible local projections, and expanding the scope of the analysis to many more importers, exporters, and products.…”
mentioning
confidence: 99%
“…Lastly, on the empirical side, this paper is connected to (few) papers that have used PTAs future tariff rates at product level. Besedes et al (2019) look at the effects on import growth of phasing out tariffs in North American Free Trade Agreement (NAFTA), while Khan and Khederlarian (2021) use the NAFTA case to better estimate the elasticity of substitution.…”
Section: Introductionmentioning
confidence: 99%