Erceg, Christopher J.; Prestipino, Andrea; Raffo, Andrea - 2018 - This version: October 1, 2018
uniform increase in import tariffs and export subsidies (IX), an increase in value-added taxes accompanied by a payroll tax … reduction (VP), and a border adjustment of corporate pro.t taxes (BAT). Using a dynamic New Keynesian open-economy framework, we … (with the output stimulus largely due to the subsidies). Under full pass-through of taxes, IX and BAT are equivalent but VP …