How Does Trade Respond to Anticipated Tariff Changes? Evidence from NAFTA

How Does Trade Respond to Anticipated Tariff Changes? Evidence from NAFTA

Firms anticipate upcoming tariff changes by shifting their purchases to periods with lower costs. This paper shows that such anticipatory dynamics overstate the trade elasticity. Standard identification of the trade response to trade cost changes u...

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Bibliographic Details
Main Authors: Khan, Shafaat Yar, Khederlarian, Armen
Format: Working Paper
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
ANTICIPATION
TRADE ELASTICITY
INVENTORIES
NAFTA
TARIFF PHASEOUT
TRADE RESPONSE
FREE TRADE AGREEMENT
PREFERENTIAL TRADE AGREEMENTS
NORTH AMERICAN FREE TRADE AGREEMENT
Online Access:http://documents.worldbank.org/curated/en/377051619701752842/How-Does-Trade-Respond-to-Anticipated-Tariff-Changes-Evidence-from-NAFTA
http://hdl.handle.net/10986/35534

Internet

http://documents.worldbank.org/curated/en/377051619701752842/How-Does-Trade-Respond-to-Anticipated-Tariff-Changes-Evidence-from-NAFTA
http://hdl.handle.net/10986/35534

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