Trade Elasticities: A Final Report for the European Commission

Jean Imbs and Isabelle Mejean

No 432, European Economy - Economic Papers 2008 - 2015 from Directorate General Economic and Financial Affairs (DG ECFIN), European Commission

Abstract: In a demand system with conventional CES preferences, the price elasticitites of aggregate trade flows are weighted averages of sector-specific elasticities of substitution. We describe a methodology that can be used to estimate country-specific values for the price elasticities of aggregate imports and exports. We first use disaggregated trade data to compute structural estimates of international substitutability for a large cross section of countries. We aggregate up the estimates using model-implied, country-specific weights. We obtain structural estimates of the price elasticities of aggregate exports and imports for more than 30 countries, including most developed and developing economies.

JEL-codes: F02 F15 F32 F41 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2010-12
New Economics Papers: this item is included in nep-eec, nep-int and nep-opm
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Citations: View citations in EconPapers (61)

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Persistent link: https://EconPapers.repec.org/RePEc:euf:ecopap:0432

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