CES Tariff Model
This is probably the most common model in industry-specific trade policy analysis. There are differentiated products from three different sources of supply and a constant elasticity of substitution (CES) among them. The model can simulate the effects of tariff changes on prices and quantities of imports and domestic shipments in the single national market.
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Recommended Citations:
Riker, D. and Schreiber S. (2020). Structural Equations for PE Models in Group 1 (Perfect Competition). U.S. International Trade Commission. Trade Policy PE Modeling Portal. |