Sachs-Warner?!

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Why are people still using the Sachs-Warner index in empirical work? It’s a dummy variable, and it’s not driven by the tariff and NTB components. Surely by now someone must have built and made readily available a cross-country data set that better describes trade policy. And if not, that’s a project worth pursuing, right?

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2 Responses to “Sachs-Warner?!”

  1. jj Says:

    You’d think so, but … I am a political scientist trying to do some political economy work on trade regime effects, and I was shocked to see that there are not good time seris bilateral tariff data anywhere. Definitely something that needs to be done.

  2. MK Says:

    We either try to measure actual policies (what Sachs-Warner tried to do) or we calculate and estimate policies. Both obviously have problems. In the latter camp, Hiscox & Kastner is probably the most interesting…

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