Reports Summarize Investment Findings from Federal Reserve Bank of Chicago (What Determines State Heterogeneity In Response To Us Tariff Changes?): Investment

2026 JUL 14 (NewsRx) -- By a News Reporter-Staff News Editor at Economics Daily Report -- Investigators publish new report on Investment. According to news reporting out of Chicago, Illinois, by NewsRx editors, research stated, “We develop a structural framework to identify the sources of cross-state heterogeneity in response to U.S. tariff changes. A unilateral 25-percentage-point U.S. tariff increase across sectors induces consumption changes ranging from -0.8% in Oregon to 2.3% in Montana.”

Financial support for this research came from Sam Houston State University.

Our news journalists obtained a quote from the research from the Federal Reserve Bank of Chicago, “This variation stems from the interaction between states’ internal comparative advantage and the nation’s external comparative advantage. Factor mobility lowers aggregate consumption and reshapes the cross-state impacts by shifting resources toward more distorted states and sectors. Consequently, preferred tariff changes vary systematically across states, necessitating transfers to align regional policy incentives.”

According to the news editors, the research concluded: “Foreign retaliation reduces aggregate gains while perpetuating cross-state variation.”

This research has been peer-reviewed.

For more information on this research see: What Determines State Heterogeneity In Response To Us Tariff Changes? International Economic Review, 2026. International Economic Review can be contacted at: Wiley, 111 River St, Hoboken 07030-5774, NJ, USA. (Wiley-Blackwell - http://www.wiley.com/; International Economic Review - http://onlinelibrary.wiley.com/journal/10.1111/(ISSN)1468-2354)

Our news journalists report that additional information may be obtained by contacting Jing Zhang, Federal Reserve Bank of Chicago, Chicago, IL 60604, United States. Additional authors for this research include Ana Maria Santacreu and Michael Sposi.

The direct object identifier (DOI) for that additional information is: https://doi.org/10.1111/iere.70081. This DOI is a link to an online electronic document that is either free or for purchase, and can be your direct source for a journal article and its citation.

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