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We propose and provide evidence for a new source of gains from trade: Firms invest in product differentiation to escape import competition. In the data and in the model, these investments are associated with increases in measured productivity, introduction of new goods, and shifts to...
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political debate about unilateral climate policies. Tariffs on the carbon embodied in imported goods from countries without … introduction of carbon tariffs can do more harm than good to domestic EITE industries. Two determinants drive the sign and … imported in intermediate inputs, industries might suffer from carbon tariffs. Secondly, the share of domestic output that is …
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On March 2018, the Trump administration introduced 25 percent tariffs on steel and 10 percent tariffs on aluminum … imports. To minimize the adverse effects of these tariffs to downstream US producers who import these products, the exclusion … to get tariff exemptions. Our estimation result suggests that firms located in Trump states were more likely to be …
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We provide a quantitative analysis of the distributional effects of the 2018 increase in tariffs by the U.S. and its …
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