2 ms·
Gotta 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
by mizzao 2y ago
Gotta 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?!?
This reads like a student who has made a mistake on an Econ 101 homework — where we would have given them an X and told them to try again. Except this failing student has now just set US trade policy.