Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/320303 
Year of Publication: 
2024
Citation: 
[Journal:] Quantitative Economics [ISSN:] 1759-7331 [Volume:] 15 [Issue:] 2 [Year:] 2024 [Pages:] 453-487
Publisher: 
The Econometric Society, New Haven, CT
Abstract: 
Structural quantitative work in international economics typically models trade costs as a log-linear function of exogenous trade-policy variables. We propose a structural approach that allows for a nonparametric relationship and for treating tariff and nontariff trade-policy variables as potentially endogenous. The data reject the assumption of log-linearity of trade costs in both tariff- and nontariffpolicy variables. We assess the effects of a unilateral increase of US tariffs on Chinese imports by 10 percentage points and document that the estimated effects on real bilateral trade-flow changes would be substantially underestimated by standard approaches.
Subjects: 
Trade policy
gravity models
semiparametric methods
nonparametric methods
generalized propensity scores
JEL: 
C14
F13
F14
Persistent Identifier of the first edition: 
Creative Commons License: 
cc-by-nc Logo
Document Type: 
Article

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