Alberto Cavalo, who co-authored the papers cited by USTR in its “reciprocal” tariff equation, has said that they inflated a key parameter by 4 – leading to a quadrupling of the tariff.
Posted by Flabby-Nonsense
Alberto Cavalo, who co-authored the papers cited by USTR in its “reciprocal” tariff equation, has said that they inflated a key parameter by 4 – leading to a quadrupling of the tariff.
Posted by Flabby-Nonsense
2 Comments
It’s obvious that they had a result in mind and worked backwards from that. That’s also why they tariff places with internet domains (“.com”, “.io”, etc) rather than countries
Pretty clear that the only reason why the two extra parameters were added to the denominator in the USTR formula was to make it appear like they put more thought into this than they really did, and to give the whole move a veneer of academic-ish economics rationale.