-PDF Download- Tariffs And The Macroeconomy EBOOK

Macroeconomic Consequences of Tariffs

Author: Davide Furceri

Publisher: International Monetary Fund

Published: 2019-01-15

Total Pages: 57

ISBN-13: 1484390067

We study the macroeconomic consequences of tariffs. We estimate impulse response functions from local projections using a panel of annual data that spans 151 countries over 1963-2014. We find that tariff increases lead, in the medium term, to economically and statistically significant declines in domestic output and productivity. Tariff increases also result in more unemployment, higher inequality, and real exchange rate appreciation, but only small effects on the trade balance. The effects on output and productivity tend to be magnified when tariffs rise during expansions, for advanced economies, and when tariffs go up, not down. Our results are robust to a large number of perturbations to our methodology, and we complement our analysis with industry-level data.

Tariffs and the Macroeconomy

Author: International Monetary Fund

Publisher: International Monetary Fund

Published: 1989-09-08

Total Pages: 98

ISBN-13: 1451960263

DOWNLOAD EBOOK →

This paper examines the macroeconomic impact of tariffs. Existing theoretical models do not provide clear-cut predictions concerning the co-movement between unilateral tariff changes and a set of macroeconomic variables consisting of the real exchange rate, the trade balance, and the level of output. Three different data sets are found to be consistent with the hypothesis that tariffs have no statistically significant impact on the trade balance, the real exchange rate, or the level of output.

The Macroeconomic Effects of Trade Tariffs

Author: Jesper Lindé

Publisher: International Monetary Fund

Published: 2017-07-07

Total Pages: 54

ISBN-13: 1484306112

DOWNLOAD EBOOK →

We study the robustness of the Lerner symmetry result in an open economy New Keynesian model with price rigidities. While the Lerner symmetry result of no real effects of a combined import tariff and export subsidy holds up approximately for a number of alternative assumptions, we obtain quantitatively important long-term deviations under complete international asset markets. Direct pass-through of tariffs and subsidies to prices and slow exchange rate adjustment can also generate significant short-term deviations from Lerner. Finally, we quantify the macroeconomic costs of a trade war and find that they can be substantial, with permanently lower income and trade volumes. However, a fully symmetric retaliation to a unilaterally imposed border adjustment tax can prevent any real or nominal effects.

Tariffs and Growth

Author: Forrest Capie

Publisher: Manchester University Press

Published: 1994

Total Pages: 118

ISBN-13: 9780719039386

DOWNLOAD EBOOK →

Considering some of the historical experiences of protectionism in the world economy, this book shows how it can be applied to the problems of the world economy today.

The Macroeconomic Consequences of Import Tariffs and Trade Policy Uncertainty

Author: Lukas Boer

Publisher: International Monetary Fund

Published: 2024-01-19

Total Pages: 76

ISBN-13:

DOWNLOAD EBOOK →

We estimate the macroeconomic effects of import tariffs and trade policy uncertainty in the United States, combining theory-consistent and narrative sign restrictions in Bayesian SVARs. We find mostly adverse consequences of protectionism, in aggregate and across sectors and regions. Tariff shocks are more important than trade policy uncertainty shocks. Tariff shocks depress trade, investment, and output persistently. The general equilibrium import elasticity is –0.8. Historically, NAFTA/WTO raised output by 1-3% for twenty years. Undoing the 2018/19 measures would raise output by 4% over three years. The findings imply higher gains of trade than partial equilibrium or static trade models.

The Political Economy of U.S. Tariffs

Author: Réal P. Lavergne

Publisher: Elsevier

Published: 2014-05-12

Total Pages: 225

ISBN-13: 1483271234

DOWNLOAD EBOOK →

The Political Economy of U.S. Tariffs: An Empirical Analysis provides information pertinent to the political economy of trade barriers. This book discusses the cross-sectional regression analysis across industries to understand why some industries have been more privileged than others. Organized into seven chapters, this book begins with an overview of the structure of protection and identifies the primary actors or principles that condition the formation of trade policy more generally. This text then evaluates the institutional and theoretical reasons why political leverage should not be expected to play a significant role in explaining tariffs. Other chapters consider the notion that the structure of protection at any point in time represents some sort of equilibrium. This book discusses as well the distinction between nominal and effective tariffs. The final chapter deals with individual regressors and groups of regressors. This book is a valuable resource for economists and specialists in quantitative analysis.

Macroeconomic Consequences of Tariffs

Author: Davide Furceri

Publisher:

Published: 2018

Total Pages: 54

ISBN-13:

DOWNLOAD EBOOK →

The Economics of Trade Protection

Author: Neil Vousden

Publisher: Cambridge University Press

Published: 1990-08-31

Total Pages: 328

ISBN-13: 9780521346696

DOWNLOAD EBOOK →

Over the past two decades there has been a gradual but fundamental change in the nature of trade protection. Even as international negotiation has succeeded in reducing tariffs to low levels, national governments have resorted to a range of increasingly intricate policies to protect their domestic industries from foreign competition. Direct quantitative restrictions on international trade have become particularly widespread. Such nontariff barriers often have very different effects from tariffs and require careful analysis in their own right. This book presents a systematic overview of the modern theory of trade protection. The material in the book divides naturally into four sections. The first section covers trade restrictions in competitive markets, the second trade restrictions and imperfect competition, the third the political economy of trade protection, and the fourth the theory of policy reform. The presentation makes extensive use of diagrams, with the more difficult mathematics included in six appendixes.

International Trade, Distortions and Long-Run Economic Growth

Author: Jong-Wha Lee

Publisher: International Monetary Fund

Published: 1992-11-01

Total Pages: 42

ISBN-13: 1451851332

DOWNLOAD EBOOK →

The links between trade and growth are examined in a neoclassical model of an open economy in which domestic production requires both domestic and imported inputs. The model shows that trade distortions induced by such government policies as tariffs and exchange controls generate cross-country divergences in growth rates and in per capita income over a long transitional period. The empirical results confirm that tariff rates and black market premia, interacting with an estimate of the share of free trade imports, have significant negative effects on the growth rate of per capita income across countries in the orders of magnitude predicted by the model.

Free Trade Areas and Rules of Origin

Author: Mr.Arvind Panagariya

Publisher: International Monetary Fund

Published: 2003-11-01

Total Pages: 31

ISBN-13: 1451875495

DOWNLOAD EBOOK →

Incorporating intermediate inputs into a small-union general-equilibrium model, this paper first develops the welfare economics of preferential trading under the rules of origin (ROO) and then demonstrates that the ROO could improve the political viability of Free Trade Agreements (FTAs). Two interesting outcomes are derived. First, a welfare reducing FTA that was rejected in the absence of the ROO becomes feasible in the presence of these rules. Second, a welfare improving FTA that was rejected in the absence of the ROO is endorsed in their presence, but upon endorsement it becomes welfare inferior relative to the status quo.