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Theory-Consistent Tariff Aggregation

Author

Listed:
  • James E. Anderson

    (Boston College)

  • Mario Larch

    (University of Bayreuth)

  • Serge Shikher

    (United States International Trade Commission)

  • Yoto V. Yotov

    (School of Economics, Drexel University and Center for Global Policy Analysis (CGPA))

Abstract

We propose a theory-consistent procedure to aggregate tariffs. Theory implies that the weights on disaggregated tariffs should be a function of tariff-free trade and trade elasticities. Our aggregator nests as special cases and corrects the deficiencies of the two existing alternatives – the simple-average and import-weighted tariffs. We create a Theory-Consistent Tariff Database (TCTD) by aggregating HS 6-digit tariffs to the industry level of the International Trade and Production databases of the USITC. Several applications highlight the advantages of the theory-consistent tariffs.

Suggested Citation

  • James E. Anderson & Mario Larch & Serge Shikher & Yoto V. Yotov, 2026. "Theory-Consistent Tariff Aggregation," Working Papers 202620, Center for Global Policy Analysis, LeBow College of Business, Drexel University.
    • Handle: RePEc:drx:wpaper:202620
    as

    Download full text from publisher

    File URL: https://www.lebow.drexel.edu/sites/default/files/2026-10/CGPA_Paper_2026_20.pdf
    File Function: First version, 2026
    Download Restriction: no
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    More about this item

    Keywords

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    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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