TESTING FOR THE IMPACT OF INFLATION ON IMPORT DEMAND FUNCTIONS

Carlos Arnade and Praveen Dixit

No 278152, Staff Reports from United States Department of Agriculture, Economic Research Service

Abstract: This paper questions the standard assumption that inflation has no effect on import demand functions. We describe a simple method for testing whether proportionate changes in prices and income influence import demands. We estimate several import demand functions and provide, some evidence that inflation influences importers' demand. We also show that, when estimating import demand functions, it is difficult to test for the correct index of inflation.

Keywords: Demand and Price Analysis; International Relations/Trade (search for similar items in EconPapers)
Pages: 22
Date: 1989-01
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Citations: View citations in EconPapers (1)

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Persistent link: https://EconPapers.repec.org/RePEc:ags:uerssr:278152

DOI: 10.22004/ag.econ.278152

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