This paper uses all value-added tax (VAT) changes across EU Member States from 1988 to 2016 estimate the effect of VATs on trade flows. We find small elasticities flows with respect VATs, even when VAT are large. These substantially smaller than tariffs estimated in literature. finding holds different time periods, countries, and types reforms. Our results imply that unlikely distort (JEL F13, ...

When countries change most favored nation (MFN) tariffs, partners that trade on MFN terms experience plausibly exogenous tariff changes. Using this variation, we estimate the elasticity at short and long horizons with local projections. We find of tariff-exclusive flows is ?0.76 in run, approximately ?2 run. Our long-run estimates are smaller than typical literature, it takes 7 to10 years to co...

This paper proposes a new test of the Protection for Sale (PFS) model by Grossman and Helpman (1994). Unlike existing methods in the literature, our approach does not require any data on political organizations. We use quantile and quantile IV regressions to do so using the data from Gawande and Bandyopadhyay (2000). Surprisingly, the results do not provide any evidence favoring the PFS model. ...

Using a long dataset on openness and productivity this paper tests the influence of openness on TFP growth and per capita growth since 1870 for 16 industrialized countries. It is shown, in simple regressions, that growth is by and large independent of openness. However, once the interaction between openness and foreign knowledge is allowed for, productivity is positively affected by openness. J...

This paper assesses the long-run bilateral trade relations between the US and Mexico. North American Free Trade Agreement (NAFTA) had no additional impacts on import functions. Gradual switching existed even before the agreement became effective. © 2002 Society for Policy Modeling. Published by Elsevier Science Inc. All rights reserved. JEL classification: F13; C22

Using monthly data on temporary trade barriers (TTBs), we estimate the dynamic employment effects of protectionism through vertical production linkages. First, exploiting high-frequency and TTB procedural details, identify policy shocks exogenous to economic fundamentals. We then use input-output tables construct measures affecting downstream producers. Finally, panel local projections using id...

To quantify trade frictions, we examine multiproduct exporters. We build a flexible general-equilibrium model and estimate market entry costs using Brazilian firm-product-destination data under rich demand access cost shocks. Our estimates show that additional products farther from firm’s core competency come at higher production costs, but there are substantive economies of scope in costs. Mar...

We use microdata collected at the border and store to characterize price impact of recent US trade policy on importers, exporters, consumers. At border, import tariff pass-through is much higher than exchange rate pass-through. Chinese exporters did not lower their dollar prices by much, despite appreciation dollar. By contrast, significantly lowered affected foreign retaliatory tariffs. In sto...