A Quantitative Analysis of Tariffs across U.S. States
Ana Maria Santacreu,
Michael Sposi () and
Jing Zhang ()
Additional contact information
Jing Zhang: Federal Reserve Bank of Chicago
No 2103, Departmental Working Papers from Southern Methodist University, Department of Economics
We develop a quantitative framework to assess the cross-state implications of a U.S. trade policy change: a unilateral increase in the import tariff from 2% to 25% across all goods-producing sectors. Although the U.S. gains overall from the tariff increase, we find the impact differs starkly across locations. Changes in real consumption (welfare) range from as high as 3.8% in Wyoming to -0.3% in Florida, depending mainly on how exposed states are to differentially-impacted sectors. As a result, the "preferred" tariff rate varies greatly across states. Foreign retaliation in trade policy substantially reduces the welfare gains across states, while perpetuating the cross-state variation in those gains. The presence of internal trade frictions amplifies the welfare impacts of changes in trade policy.
Keywords: International trade; Interstate trade; Welfare gains from trade. (search for similar items in EconPapers)
JEL-codes: F11 F62 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
Working Paper: A Quantitative Analysis of Tariffs Across U.S. States (2021)
Working Paper: A Quantitative Analysis of Tariffs across U.S. States (2021)
Working Paper: A Quantitative Analysis of Tariffs across U.S. States (2019)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:smu:ecowpa:2103
Access Statistics for this paper
More papers in Departmental Working Papers from Southern Methodist University, Department of Economics Department of Economics, P.O. Box 750496, Southern Methodist University, Dallas, TX 75275-0496.
Bibliographic data for series maintained by Ömer Özak ().