How Does Trade Respond to Anticipated Tariff Changes? Evidence from NAFTA

Firms anticipate upcoming tariff changes by shifting their purchases to periods with lower costs. This paper shows that such anticipatory dynamics overstate the trade elasticity. Standard identification of the trade response to trade cost changes u...

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Bibliographic Details
Main Authors: Khan, Shafaat Yar, Khederlarian, Armen
Language:English
Published: World Bank, Washington, DC 2021
Subjects:
Online Access:http://documents.worldbank.org/curated/en/377051619701752842/How-Does-Trade-Respond-to-Anticipated-Tariff-Changes-Evidence-from-NAFTA
http://hdl.handle.net/10986/35534