Arbeitspapier
What determines state heterogeneity in response to US tariff changes?
We develop a structural framework to identify the sources of cross-state heterogeneity in response to US tariff changes. We quantify the effects of unilaterally increasing US tariffs by 25 percentage points across sectors. Welfare changes range from −0.8 percent in Oregon to 2.1 percent in Montana. States gain more when their sectoral comparative advantage covaries negatively with that of the aggregate US. Consequently, "preferred" changes in tariffs vary systematically across states, indicating the importance of transfers in aligning state preferences over trade policy. Foreign retaliation substantially reduces the gains across states while perpetuating the cross-state variation.
- Language
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Englisch
- Bibliographic citation
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Series: Working Paper ; No. WP 2023-09
- Classification
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Wirtschaft
Neoclassical Models of Trade
Economic Impacts of Globalization: Macroeconomic Impacts
- Subject
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Interstate trade
Gains from trade
Customs union
- Event
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Geistige Schöpfung
- (who)
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Santacreu, Ana Maria
Sposi, Michael
Zhang, Jing
- Event
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Veröffentlichung
- (who)
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Federal Reserve Bank of Chicago
- (where)
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Chicago, IL
- (when)
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2023
- DOI
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doi:10.21033/wp-2023-09
- Handle
- Last update
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10.03.2025, 11:43 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Santacreu, Ana Maria
- Sposi, Michael
- Zhang, Jing
- Federal Reserve Bank of Chicago
Time of origin
- 2023
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