CPA Improves Leading Trade Model to Reflect Real-World Effects of Trade

Key Points The standard widely-used trade model, GTAP, has been wrong in its forecasts of every major U.S. trade agreement. CPA economists have modified the model to allow it to show more realistically the effects of trade policy on employment and the entire economy. Our modified GTAP model, GTAP-FP, finds that import restriction or policies…

What are the Best Tariffs for the U.S.? Economists Say: From 14% to 60%

What is the difference between an undergraduate international trade economics class and a graduate-level class? The difference is that in an undergraduate economics class they teach you that the ideal level of tariffs for any country is zero. Free trade rules! But in a graduate-level class, they teach you that tariffs can help a nation…

Model Shows that Universal 10% Tariff Would Improve Incomes, Output and Jobs (Updated)

Note: This version is updated with results for additional tax revenue and a retaliation scenario. Key Points CPA modeled former President Trump’s recent proposal regarding a 10% universal tariff. Our simulation finds that the tariff change would increase economic growth and create opportunity for Americans through increasing incomes and job creation. Under the proposal, real…