Economics at your fingertips  

In Search of the Armington Elasticity

Robert Feenstra (), Philip Luck, Maurice Obstfeld and Katheryn Russ ()
Additional contact information
Philip Luck: CU Denver

The Review of Economics and Statistics, 2018, vol. 100, issue 1, 135-150

Abstract: How big is the elasticity of substitution between goods from different countries—the Armington elasticity? Estimates of the macroelasticity between home and imported goods are often smaller than the microelasticity between foreign sources of imports. Using new, highly disaggregate U.S. production data matched to imports and simulated data from a Melitz-style model with nested CES preferences, we explore estimation techniques for the two elasticities. For between two-thirds and three-quarters of sample goods, there is no significant difference between the macro- and microelasticities, but for the rest, the microelasticity is significantly higher, even at the same level of disaggregation.

Date: 2018
References: Add references at CitEc
Citations: View citations in EconPapers (4) Track citations by RSS feed

Downloads: (external link) (application/pdf)
Access to PDF is restricted to subscribers.

Related works:
Working Paper: In Search of the Armington Elasticity (2014) Downloads
Working Paper: In Search of the Armington Elasticity (2014) Downloads
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:

Ordering information: This journal article can be ordered from
https://mitpressjour ... rnal/?issn=0034-6535

Access Statistics for this article

The Review of Economics and Statistics is currently edited by Amitabh Chandra, Olivier Coibion, Bryan S. Graham, Shachar Kariv, Amit K. Khandelwal, Asim Ijaz Khwaja, Brigitte C. Madrian and Rohini Pande

More articles in The Review of Economics and Statistics from MIT Press
Bibliographic data for series maintained by Ann Olson ().

Page updated 2019-11-14
Handle: RePEc:tpr:restat:v:100:y:2018:i:1:p:135-150