Comment by davedx
8 days ago
It's not: in the formula they posted, phi is the "passthrough from tariffs to import prices". That's where the country's own tariffs are factored in. Or am I reading this wrong?
8 days ago
It's not: in the formula they posted, phi is the "passthrough from tariffs to import prices". That's where the country's own tariffs are factored in. Or am I reading this wrong?
> Parameter Selection
> ... The price elasticity of import demand, ε, was set at 4.
> ... The elasticity of import prices with respect to tariffs, φ, is 0.25. ...
Those two letters are Greek! Tariff them! Substitute them with superior American letters, like... you know what you have to do!
You're reading it wrong because it's nonsense
None of the values are related to their names in any way
It is AI-generated slop. They did no work on this at all.