{"type":"script","doc_desc":{"producers":[{"name":"Reproducibility WBG","abbr":"DECDI","affiliation":"World Bank - Development Impact Department","role":"Verification and preparation of metadata"}],"prod_date":"2026-08-31","version":"1"},"project_desc":{"authoring_entity":[{"name":"Hiau Looi Kee","affiliation":"World Bank","email":"hlkee@worldbank.org"},{"name":"Ileana Cristina Neagu","affiliation":"World Bank","email":"ineagu@worldbank.org"},{"name":"Yoto V. Yotov","affiliation":"Drexel University","email":"yotov@drexel.edu"}],"title_statement":{"title":"Reproducibility package for Bilateral Import Demand Elasticities And Balanced Trade Protection","idno":"RR_WLD_2026_714"},"data_statement":"All data is temporarily embargoed by the authors (expected to be made public in the future).","software":[{"name":"Stata","version":"MP 19.5"}],"scripts":[{"title":"Reproducibility package for Bilateral Import Demand Elasticities And Balanced Trade Protection","date":"2026-08","notes":"Computational reproducibility verified by Development Impact (DECDI) Analytics team, World Bank.","instructions":"See README in reproducibility package.","file_name":"RR_WLD_2026_714","zip_package":"RR_WLD_2026_714.zip","dependencies":"Stata dependencies are listed in the ado folder."}],"repository_uri":[{"name":"Reproducible Research Repository (World Bank)","uri":"https:\/\/reproducibility.worldbank.org"}],"production_date":"2026-08-31","abstract":"Recognizing that macroeconomic conditions determine aggregate trade imbalances, can tariffs eliminate bilateral trade deficits? We introduce the Balanced Trade Tariff Index (BTTI), the uniform tariff that closes bilateral deficits while holding macroeconomic conditions fixed. The BTTI requires bilateral, product-level import demand elasticities, which we estimate using a translog GDP function for seven major economies. The resulting elasticity estimates exhibit substantial heterogeneity across importers, exporters, products, and trade directions. Accounting for this heterogeneity lowers average BTTIs relative to homogeneous-elasticity benchmarks but requires substantially higher tariffs for exporters of inelastic products, highlighting the limits of tariffs for balancing bilateral trade deficits.","geographic_units":[{"name":"World","code":"WLD"}],"keywords":[{"name":"Tariffs"},{"name":"Balanced Trade"},{"name":"Bilateral Import Demand Elasticity"},{"name":"Trade Deficits"}],"topics":[{"id":"F13","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Trade Policy \u2022 International Trade Organizations","parent_id":"F1"},{"id":" F14","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Empirical Studies of Trade","parent_id":"F1"},{"id":" O11","uri":"https:\/\/www.aeaweb.org\/econlit\/jelCodes.php?view=jel","vocabulary":"Journal of Economic Literature (JEL)","name":"Macroeconomic Analyses of Economic Development","parent_id":"O1"}],"output":[{"type":"Working Paper","description":"Policy Research Working Papers (PRWP)","title":"Bilateral Import Demand Elasticities And Balanced Trade Protection"}],"language":[{"name":"English","code":"EN"}],"technology_requirements":"Run time: ~5 minutes.","disclaimer":"The materials in the reproducibility packages are distributed as they were prepared by the staff of the International Bank for Reconstruction and Development\/The World Bank. The findings, interpretations, and conclusions expressed in this event do not necessarily reflect the views of the World Bank, the Executive Directors of the World Bank, or the governments they represent. The World Bank does not guarantee the accuracy of the materials included in the reproducibility package.","license":[{"name":"MIT License","uri":"https:\/\/opensource.org\/license\/mit"},{"name":"World Bank IGO Rider","uri":"https:\/\/github.com\/worldbank\/metadata-editor\/blob\/main\/WB-IGO-RIDER.md"}],"contacts":[{"name":"Hiau Looi Kee","affiliation":"World Bank","email":"hlkee@worldbank.org"},{"name":"Reproducibility WBG","affiliation":"World Bank","email":"reproducibility@worldbank.org"}],"datasets":[{"name":"Bilateral Import Demand Elasticities","note":"Source: Authors' compilation based on tariff data from the Trade Analysis and Information System (TRAINS)\/World Integrated Trade Solution (WITS), bilateral trade data from the Centre d'Etudes Prospectives et d'Informations Internationales - Base pour l'Analyse du Commerce International (CEPII-BACI, version 202601), and macroeconomic indicators from the World Bank World Development Indicators (WDI).\nDescription: Bilateral import demand elasticities for 7 importers (United States, European Union, Canada, China, India, Japan, and Mexico) at the HS 6-digit level (2007 HS nomenclature). \nPeriod covered: 2010\u20132023. \nDataset construction date: April 2026.\nFile location: \"DATASETS\\ELASTICITIES\".","access_type":"Data is forthcoming in the World Bank Development Data Hub.","citation":"Kee, Hiau Looi, Ileana Cristina Neagu, and Yoto V. Yotov. (2026). \"Bilateral Import Demand Elasticities\" [dataset]. World Bank."},{"name":"Balanced Trade Tariff Index (BTTI) for the United States ","note":"Source: Authors' compilation.\nDescription: Contains the Balanced Trade Tariff Index (BTTI) and related tariff indexes for the United States, combining bilateral import demand elasticities and 2023 trade values. Importers covered: all countries for which U.S. elasticities were computed.\nPeriod covered: 2023.\nDataset construction date: April 2026.\nFile location: \"DATASETS\".\nFile names: BTTI_USA.dta.","access_type":"Data is forthcoming in the World Bank Development Data Hub.","citation":"Kee, Hiau Looi, Ileana Cristina Neagu, and Yoto V. Yotov. (2026). \"Bilateral Trade Tariff Index for the United States\" [dataset]. World Bank."},{"name":"Deadweight Loss (DWL) of Tariffs for the United States ","note":"Source: Authors' compilation.\nDescription: Contains estimates of the deadweight loss (DWL) associated with the Balanced Trade Tariff Index (BTTI) and related tariff indexes for the United States. Based on bilateral import demand elasticities and 2023 trade values. Importers covered: all countries for which U.S. elasticities were computed.\nPeriod covered: 2023.\nDataset construction date: April 2026.\nFile location: \"DATASETS\".\nFile names: DWL_USA.dta.","access_type":"Data is forthcoming in the World Bank Development Data Hub.","citation":"Kee, Hiau Looi, Ileana Cristina Neagu, and Yoto V. Yotov. (2026). \"Deadweight Loss of Tariffs for the United States\" [dataset]. World Bank."}],"technology_environment":"Paper exhibits were reproduced on a computer with the following specifications:\n\u2022 OS: Windows 11 Enterprise\n\u2022 Processor: Intel(R) Xeon(R) Gold 6226R CPU @ 2.90GHz\n\u2022 Memory available: 32.0 GB","reproduction_instructions":"The replication package starts from cleaned datasets and these are not included in the package.\n\nTo reproduce the findings in this paper, a replicator must:\n1. **Secure Access to Data:** Access the datasets not included in the package. See the Datasets section for more details.\n2. **Run the Package:**\n  - Update the working directory in line 8 of the do-file `Prepare tables and figures`, and run it.\n\nSince not all the data is included, the package includes the results produced by replicators. These files can be used to review the results presented in the paper."},"datacite":{"creators":[{"givenName":"Hiau Looi","familyName":"Kee","nameType":"Personal","affiliation":[{"name":"World Bank","affiliationIdentifier":"https:\/\/ror.org\/00ae7jd04","affiliationIdentifierScheme":"ROR","schemeUri":"https:\/\/ror.org"}]},{"givenName":"Ileana Cristina","familyName":"Neagu","nameType":"Personal","affiliation":[{"name":"World Bank","affiliationIdentifier":"https:\/\/ror.org\/00ae7jd04","affiliationIdentifierScheme":"ROR","schemeUri":"https:\/\/ror.org"}]},{"givenName":"Yoto V.","familyName":"Yotov","nameType":"Personal","affiliation":[{"name":"Drexel University","affiliationIdentifier":"https:\/\/ror.org\/04bdffz58","affiliationIdentifierScheme":"ROR","schemeUri":"https:\/\/ror.org"}]}],"titles":[{"lang":"en","title":"Reproducibility package for Bilateral Import Demand Elasticities And Balanced Trade Protection"},{"title":"RR_WLD_2026_714","titleType":"Other"}],"publisher":"World Bank","publicationYear":"2026","types":{"resourceType":"Reproducibility package","resourceTypeGeneral":"Other"},"url":"https:\/\/reproducibility.worldbank.org\/index.php\/catalog\/study\/RR_WLD_2026_714","language":"en"},"tags":[{"tag":"DOI"},{"tag":"Open Code"},{"tag":"Restricted Data"}],"schematype":"script"}