The impact of price variability on US imports of homogeneous inputs

Antoine Gervais

Economics Letters, 2016, vol. 143, issue C, 16-19

Abstract: In this paper, I quantify the impact of price variability on homogeneous intermediate goods imports. In product-level data, I find a country’s share of US imports is decreasing in the level and the variance of its unit price. This finding is consistent with a model of sourcing decisions in which risk averse final-goods firms choose the optimal distribution of intermediate inputs demand across suppliers.

Keywords: Homogeneous inputs; Imports; International trade; Uncertainty (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2016
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Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:143:y:2016:i:c:p:16-19

DOI: 10.1016/j.econlet.2016.03.002

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