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Article links here which explains how they did it, with reasoning and references: https://ustr.gov/issue-areas/reciprocal-tariff-calculations https://ustr.gov/i
by Izkata 2y ago
Article links here which explains how they did it, with reasoning and references: https://ustr.gov/issue-areas/reciprocal-tariff-calculations https://ustr.gov/issue-areas/reciprocal-tariff-calculations
- seydor 2y agoYea that's even more ridiculous. Epsilon*phi equals to 1 because i guess that's the best mathiness they could do.
- mizzao 2y agoGotta love these two sentences in that article: (when describing the model) Let ε<0 represent the elasticity of imports with respect to import prices... (when implementing the model) The price elasticity of import demand, ε, was set at 4. 4 is less than 0, right? Right?!?
- nxobject 2y agoMy favorite citation is curiously missing from the references (as of Sat April 5, 6:40 EST): > The recent experience with U.S. tariffs on China has demonstrated that tariff passthrough to retail prices was low (Cavallo et al, 2021). The line that says "sure, tariffs won't cost consumers _that_ much", and they don't even have a bibliographic entry for Cavallo et al. 2021.