EconPapers    
Economics at your fingertips  
 

A Model of the Euro Area, China and the United States: Trade Links and Trade Wars

Volha Audzei and Jan Bruha

Working Papers from Czech National Bank

Abstract: In this paper we develop a dynamic stochastic general equilibrium model featuring the euro area, the United States and China, with an exogenous rest of the world. The countries in the model are linked through trade and international bond purchases. Having estimated the model, we study several scenarios of trade wars between the countries. Our findings suggest that no country benefits from imposing tariffs in the long run. The degree to which a particular country is hurt depends on the strength of its import and export links.

Keywords: Bayesian estimation; China; multi-country DSGE; trade wars (search for similar items in EconPapers)
JEL-codes: C11 E37 F13 F41 (search for similar items in EconPapers)
Date: 2020-12
New Economics Papers: this item is included in nep-dge, nep-eec, nep-int, nep-mac, nep-opm and nep-ore
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed

Downloads: (external link)
https://www.cnb.cz/export/sites/cnb/en/economic-re ... wp/cnbwp_2020_06.pdf

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cnb:wpaper:2020/6

Access Statistics for this paper

More papers in Working Papers from Czech National Bank Contact information at EDIRC.
Bibliographic data for series maintained by Jan Babecky ().

 
Page updated 2021-03-28
Handle: RePEc:cnb:wpaper:2020/6