Data and Code For: The Long and Short (Run) of Trade Elasticities
Principal Investigator(s): View help for Principal Investigator(s) Christoph Boehm, University of Texas at Austin; Andrei Levchenko, University of Michigan; Nitya Pandalai-Nayar, University of Texas at Austin
Version: View help for Version V1
| Name | File Type | Size | Last Modified |
|---|---|---|---|
| bashfiles | 12/13/2022 08:55:PM | ||
| code | 02/10/2023 11:06:AM | ||
| data | 12/15/2022 07:18:PM | ||
| output | 12/13/2022 08:55:PM | ||
| temp_files | 12/13/2022 08:55:PM | ||
|
|
text/plain | 2 KB | 12/12/2022 06:16:AM |
|
|
application/pdf | 243.5 KB | 02/10/2023 05:39:AM |
|
|
application/vnd.openxmlformats-officedocument.spreadsheetml.sheet | 53.5 KB | 12/15/2022 04:02:PM |
Project Citation:
Boehm, Christoph, Levchenko, Andrei, and Pandalai-Nayar, Nitya. Data and Code For: The Long and Short (Run) of Trade Elasticities. Nashville, TN: American Economic Association [publisher], 2023. Ann Arbor, MI: Inter-university Consortium for Political and Social Research [distributor], 2023-03-21. https://doi.org/10.3886/E182781V1
Project Description
Summary:
View help for Summary
This is replication code and data for the paper "The Long and Short (Run) Of Trade Elasticities."
Abstract: We propose a novel approach to estimate the trade elasticity at various horizons. When countries change Most Favored Nation (MFN) tariffs, partners that trade on MFN terms experience plausibly exogenous tariff changes. The differential effects on imports from these countries relative to a control group – countries not subject to the MFN tariff scheme – can be used to identify the trade elasticity. We build a panel dataset combining information on product-level tariffs and trade flows covering 1995-2018, and estimate the trade elasticity at short and long horizons using
Abstract: We propose a novel approach to estimate the trade elasticity at various horizons. When countries change Most Favored Nation (MFN) tariffs, partners that trade on MFN terms experience plausibly exogenous tariff changes. The differential effects on imports from these countries relative to a control group – countries not subject to the MFN tariff scheme – can be used to identify the trade elasticity. We build a panel dataset combining information on product-level tariffs and trade flows covering 1995-2018, and estimate the trade elasticity at short and long horizons using
local projections (Jordà, 2005). Our main findings are that the elasticity of tariff-exclusive trade flows in the year following the exogenous tariff change is about −0.76, and the long-run elasticity ranges from −1.75 to −2.25. Our long-run estimates are smaller than typical in the literature, and it takes 7-10 years to converge to the long run, implying that (i) the welfare gains from trade are high and (ii) there are substantial convexities in the costs of adjusting export participation.
Scope of Project
Subject Terms:
View help for Subject Terms
Trade Elasticity
JEL Classification:
View help for JEL Classification
F14 Empirical Studies of Trade
F40 Macroeconomic Aspects of International Trade and Finance: General
F14 Empirical Studies of Trade
F40 Macroeconomic Aspects of International Trade and Finance: General
Time Period(s):
View help for Time Period(s)
1995 – 2018
Related Publications
Published Versions
Report a Problem
Found a serious problem with the data, such as disclosure risk or copyrighted content? Let us know.
This material is distributed exactly as it arrived from the data depositor. ICPSR has not checked or processed this material. Users should consult the investigator(s) if further information is desired.