This site offers industry-specific, partial equilibrium (PE) modeling tools that can be used to simulate the economic impact of changes in trade policies. The models are based on economic theory and can be applied to specific industry data and policy scenarios.

PE models are sets of equations that identify the economic factors that influence the prices and sales of imports and competing domestic products in the industry. They estimate the economic impact of changes in tariff rates, including changes in equilibrium prices, domestic shipments, or imports from their initial values. PE models are often used for prospective analysis of policy changes not yet in force, though they can also be used to analyze the impact of policy changes in the past.

IMPORTANT DISCLAIMERS

The models posted on this Portal are the result of ongoing professional research of USITC staff and are solely meant to represent the opinions and professional research of individual staff economists. The models are not meant to represent in any way the view of the U.S. International Trade Commission or any of its individual Commissioners.

This Portal contains generic versions of the models with fictional, illustrative data. The models do not include the data or other customizations included in Commission reports. Predictions based on these models will depend on the specific data and parameter values that are supplied by the user, and so these predictions are solely the responsibility of the user of the modeling tools.

Displaying 11 - 20 of 32

Model Type Release Date Summary
Cournot Tariff Model with 3 Firms Model

This variant includes three firms serving a highly concentrated domestic market. Firms maximize profits in a Cournot-style competition. The model can simulate the effects of a tariff change on prices, quantities, and profits in the market.
Cross Border Ownership FDI Model Model

This variant of the Bertrand imperfect competition model addresses the case where there is foreign ownership and/or control over a domestic subsidiary firm. The model can simulate the effects of changes in tariffs on prices and quantities in a market with cross-border ownership and control.
Export Platform FDI Model Model

This variant of the Bertrand imperfect competition model predicts when firms with offshoring will re-shore production after a large tariff increase. The model can simulate the effects of changes in tariffs on mode of supply, prices and quantities in a foreign market.
Extended Model with New Entry of Subject Imports Model

This variant includes three initial sources of supply, with no initial volumes of imports from suppliers subject to tariff changes. The model uses a reference group to calibrate the marginal costs of subject imports entering the market. The model can simulate the effects of a tariff change on prices and quantities for imports and domestic producers in cases where there are no initial volumes of imports from suppliers subject to the tariff changes.
FDI, Trade, and Pricing Model Model

This variant is a Bertrand differentiated products model with several alternative forms of foreign direct investment, including foreign acquisitions with and without technology transfer and greenfield investment. The model simulates changes in prices, trades, and industry employment associated with the different types of foreign direct investment.
Many Country Trade Model with Country-Specific Supply Shocks Model

This variant includes up to give source countries and national destination markets. This model can simulate the effects of country-specific supply shocks on prices and volumes of net imports and consumption in all of the countries.
Mode With Entry of a New Source of Imports Model

This variant of the perfect competition tariff model addresses the case when a tariff reduction leads to the entry of a new source of imports into the market. It can simulate the effects of the new entry on the prices and quantities of imports and domestic shipments in the market.
Model of Trade and Innovation Model

This variant is a static, partial equilibrium version of models of trade and incentives to innovate. It can be used to simulate the increase in innovation that could result from protecting intellectual property rights in an additional export market.
Model of the Value of a Monopoly Created by Protecting IPR Model

This variant simulates the profits created by monopolization of a previously competitive market. It can be used to simulate the economic effects on prices and profits of protecting intellectual property rights.
Model with Cross-Border Trade, Fixed Costs, Tariffs, and Firm Heterogeneity but No Foreign Affiliate Sales Model

This variant includes monopolistically competitive firms with heterogeneous productivity and scale economies. The model can simulate the effects of changes in tariffs, fixed costs of production, and fixed costs of exporting on the volume of international trade and domestic shipments.