Fig 1.
IRFS under the tariffs shock on the Small Open and Two-Country HANK.
Fig 2.
Solving steps for Two-Country HANK model.
Table 1.
Parameters of model.
Fig 3.
Trade friction mechanism between two countries.
Fig 4.
Trade war under the symmetric economy.
Fig 5.
Impulse responses, under the tariffs shock of home country.
Fig 6.
Impulse responses, under the tariffs shock of foreign country.
Fig 7.
Impulse responses, under the bilateral tariffs shocks.
Fig 8.
Trade war under the asymmetric economy.
Fig 9.
Impulse responses, under the tariffs shock of foreign country.
Fig 10.
Bilateral shocks of income tax on foreign investments.
Fig 11.
Bilateral shocks on the tariffs and income tax of foreign investments.
Fig 12.
Changes on imported goods before and after trade friction.
Fig 13.
Comparison between the trade war and third-party trade detours.
Fig 14.
Trade data on the three countries.