Since 2018, the U.S. has imposed import tariffs ranging from 10 to 50 percent on goods from China. Using data collected at the border and at retailers, Alberto Cavallo of Harvard University and coauthors estimate that, on average, foreign exporters have passed 92% of the cost of the tariffs on to U.S businesses in the form of higher prices.
A May 2019 study by economists from Harvard University, the University of Chicago and the Federal Reserve Bank of Boston on the impact of tariffs on the U.S. economy found that the cost of tariffs “has fallen largely on the U.S.”
President Trump’s trade truce with China may have temporarily cooled tensions between the world’s two largest economies. Anew paper by researchers at Harvard University, the University of Chicago and the Federal Reserve Bank of Boston suggests that businesses and consumers in the United States are feeling an impact from the trade fight and that the pain could escalate.
Amazon is used to fielding accusations: that it has killed off physical retail business, that it mistreats warehouse workers, that it abuses its dominant platform in online sales. So perhaps it is not a surprise that some people also blame it for low inflation. In 2017 Janet Yellen, then chair of the Federal Reserve, wondered aloud if cut-throat online competition might be stopping goods-producers raising prices even in a world of rising demand. Alberto Cavallo of Harvard Business School has found that Amazon’s prices are 6% lower than those of eight large retailers, and 5% lower than on those retailers’ websites.
Donald Trump has threatened to impose a sweeping new round of trade tariffs against imports from China. According to analysis by Reuters, it would mean 92% of hardware sold by Apple would face levies.
If the tariffs are indeed imposed in December, it could mean several outcomes – none of which Apple will be particularly keen on, explained Alberto Cavallo, an associate professor at Harvard Business School.
The reality is that offline and online price levels are identical about 72 per cent of the time. The figure is based on a study by Harvard Business School’s Associate Professor Alberto Cavallo, whose research covered 24,000 products in 10 countries, including Australia, China and Japan.
Drugstores and office-product retailers have the lowest share of identical prices, while electronics and clothing stores have the most.
Weimar! Zimbabwe! These were the historical precedents genuinely expressed a decade ago about what an unprecedented experiment in monetary policy would do to advanced industrial economies. A huge expansion of the money supply, through quantitative easing, and near-zero interest rates might be an immediate palliative in a deep recession but they’d spark an inflationary crisis later on. And high inflation wipes out savings and destroys living standards.
A study published last year by Alberto Cavallo, a Harvard Business School marketing professor, found that price changes across the U.S. retailing industry have become more frequent over the last decade because of online competition.
US exporters have been slashing the prices of goods they sell to China to offset higher trade costs, but Chinese exporters are passing those costs to American companies, research by Alberto F. Cavallo says.