My new paper, When Tariffs Bite: The Short-Run vs Long-Run Welfare Effects of Trade Wars, is now on SSRN! Do tariffs become more damaging over time? Not necessarily. My main finding is that LR adjustment does not mechanically amplify the SR effect. For more detail 👇 papers.ssrn.com/sol3/papers....
When Tariffs Bite: The Short-Run vs Long-Run Welfare Effects of Trade Wars
This paper estimates short-run and long-run sector-specific trade elasticities using a panel of 170 countries and 22 manufacturing sectors over 1995-2022, and i
papers.ssrn.com