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It's Greek to me (i.imgur.com)
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[-] givesomefucks@lemmy.world 2 points 2 months ago* (last edited 2 months ago)

All the chat bots say this is how you balance it...

They absolutely asked chatbots, and I'd bet money at some stage someone said "make it look more complicated" and that was then made as a prompt to the AI...

Who made a simple mathmatic equation look complicated by adding shit that cancels out.

The people who actually used the numbers had no idea where they came from, or what it meant.

So they're almost certainly learning today that it both was made by a chatbot, and that it's just that simple.

Like, the people running this clown show literally and figuratively don't know what they're doing. They think real experts are giving them advise on this shit and it's some boomer using chatgpt

[-] Ideonek@lemm.ee 0 points 2 months ago

Can someone please provide the context what epsilon and phi suppose to represent and why they are 4 and 1/4?

[-] Jordan117@lemmy.world 1 points 2 months ago* (last edited 2 months ago)

Direct from USTR.gov:

To calculate reciprocal tariffs, import and export data from the U.S. Census Bureau for 2024. Parameter values for ε and φ were selected. The price elasticity of import demand, ε, was set at 4.

Recent evidence suggests the elasticity is near 2 in the long run (Boehm et al., 2023), but estimates of the elasticity vary. To be conservative, studies that find higher elasticities near 3-4 (e.g., Broda and Weinstein 2006; Simonovska and Waugh 2014; Soderbery 2018) were drawn on. The elasticity of import prices with respect to tariffs, φ, is 0.25. The recent experience with U.S. tariffs on China has demonstrated that tariff passthrough to retail prices was low (Cavallo et al, 2021).

this post was submitted on 03 Apr 2025
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