The Imputed Effect of the 2018 Tariffs on US Factor Shares

Auteurs-es

  • Henry Thompson Auburn University
  • Alexi Thompson South Carolina State University

DOI :

https://doi.org/10.15353/rea.v16i1.5246

Mots-clés :

import tariffs, factor shares, skilled labor, energy input

Résumé

The discretionary 2018 increase in the average tariff from 2% to 12% will have broad effects across the US economy reflected in the present predicted factor shares of capital, labor, skilled labor, and energy input.  Error correction estimates of a Linear Almost Ideal Demand System introduce the price of import competing goods as a proxy for the average tariff in annual 1983-2018 data.  The historically large tariff increase will boost the rising capital share of income while the declining labor share accelerates and the rising skilled labor share reverses.  Capital is the only winner due to the increased tariffs.    

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Publié-e

2024-03-18

Numéro

Vol. 16 No. 1 (2024)

Rubrique

Articles

Licence

© Henry Thompson, Alexi Thompson 2024

Licence Creative Commons

Cette œuvre est sous licence Creative Commons Attribution - Pas d'Utilisation Commerciale 4.0 International.

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