Extended Model with New Entry of Subject Imports

Release Date: 2019-05-13

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.

Tags:
Imperfect Competition Tariff

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Recommended Citations:
Riker, D. (2019). An Industry-Specific Model with New Entry of Subject Imports . U.S. International Trade Commission. Economics Working Paper 2019-02-A.