Theory-Consistent Tariff Aggregation
James Anderson,
Mario Larch,
Serge Shikher and
Yoto Yotov
No 202620, Working Papers from Center for Global Policy Analysis, LeBow College of Business, Drexel University
Abstract:
We propose a theory-consistent procedure to aggregate tariffs. Theory implies that the weights on disaggregated tariffs should be a function of tariff-free trade and trade elasticities. Our aggregator nests as special cases and corrects the deficiencies of the two existing alternatives – the simple-average and import-weighted tariffs. We create a Theory-Consistent Tariff Database (TCTD) by aggregating HS 6-digit tariffs to the industry level of the International Trade and Production databases of the USITC. Several applications highlight the advantages of the theory-consistent tariffs.
Keywords: Tariffs; Tariff Aggregation; Gravity Theory; Trade Elasticity (search for similar items in EconPapers)
JEL-codes: F11 F13 F14 (search for similar items in EconPapers)
Pages: 51
Date: 2026-10
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https://www.lebow.drexel.edu/sites/default/files/2026-10/CGPA_Paper_2026_20.pdf First version, 2026 (application/pdf)
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Working Paper: Theory-Consistent Tariff Aggregation (2026) 
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Persistent link: https://EconPapers.repec.org/RePEc:drx:wpaper:202620
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