Missing tariffs -Errors in tariff data and their impact on trade policy studies
12 November 2024 2:00 pm CET
Join Feodora Teti as she explores how misreported tariff data impacts trade policy studies and introduces selection bias.
In cooperation with:
Research Centre International Economics (FIW)
Venue
online
Description
Many studies use tariff data to measure changes in trade policy. This paper reveals significant errors in one of the standard sources for tariff rates, the World Integrated Trade Solution (WITS), due to incomplete reporting—resulting in measurement errors from false interpolation—and selection bias from dropping tariff rates when no trade is recorded. A new interpolation algorithm is proposed to account for misreporting, and the resulting global tariff dataset is used to demonstrate the practical relevance of missing tariffs by replicating recent studies that rely on WITS data. The findings show that studies leveraging cross-country tariff variation, such as estimates of trade elasticity, are particularly sensitive to the mishandling of tariff data.
This event is co-organised with the European University Institute (EUI) and the Research Centre International Economics (FIW). The seminar provides a forum for presentation and discussion of recent academic research in the field of international economics.
The event will be recorded.
Registration
For further details and to attend this seminar, please register here.
Speaker
Fedora Teti, PhD is an IES Postdoctoral Fellow and an Assistant Professor (non-tenure) & Economist at the LMU & Ifo Institute (on leave). Her research interests lie in international trade, particularly trade policy.
Discussant
Dela-Dem Doe Fiankor, PhD is an Assistant Professor at the University of Göttingen, wherehe holds the Chair of Food Economics and Policy at the Department of Agricultural Economics and Rural Development. His research combines applied economics with multiple other disciples, especially often agriculture and international trade. He obtained a PhD in Agricultural Economics from the University of Göttingen.
Scientific Organiser(s):
Fabio Santeramo (European University Institute)
Mahdi Ghodsi (The Vienna Institute for International Economic Studies)