Technology, Trade, and Quality Slopes

Adina Ardelean () and Volodymyr Lugovskyy
Additional contact information
Adina Ardelean: Santa Clara University

No 2015-004, CAEPR Working Papers from Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington

Abstract: We investigate the factors that, in addition to preferences, affect the extent to which richer households pay more for a given durable good with respect to their expenditures on nondurables, defined as the quality slope. We show theoretically and confirm empirically that the quality slope decreases in the cost elasticity of quality. Given that this elasticity varies across countries, the quality slope also depends on tariffs. Specifcally, it increases in the tariff on middle-income exporters (higher elasticity) and decreases in the tariff on imports from high-income OECD exporters (lower elasticity) to the U.S.

Keywords: Quality Differentiation; Quality Upgrading; Non-homothetic; Technology; International Trade (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2015-04
New Economics Papers: this item is included in nep-int
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://caepr.indiana.edu/RePEc/inu/caeprp/caepr2015-004.pdf (application/pdf)
Our link check indicates that this URL is bad, the error code is: 404 Not Found

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:inu:caeprp:2015004

Access Statistics for this paper

More papers in CAEPR Working Papers from Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington Contact information at EDIRC.
Bibliographic data for series maintained by Center for Applied Economics and Policy Research ().