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Estimation of the elasticity of substitution between imported and domestically produced intermediate inputs

Chris M. Alaouze

Centre of Policy Studies/IMPACT Centre Working Papers from Victoria University, Centre of Policy Studies/IMPACT Centre

Abstract: This 1977 paper is one of several by Alaouze about estimating Armington elasticities for the ORANI model. It postulates that during periods of high demand, domestic producers are unable to supply goods promptly and so purchasers must wait for delivery. The implicit cost of waiting for domestic goods inclines users to imported equivalents, even if domestic prices do not rise relative to foreign. A measure or index for "pressure of demand" is described which is then used as a regressor to explain import demand. Please note: The PDF download of this fairly old paper is an optical scan of indifferent, but legible, quality

Keywords: Armington elasticities; import share (search for similar items in EconPapers)
JEL-codes: F14 C20 C51 (search for similar items in EconPapers)
Date: 1977-10
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Downloads: (external link)
https://www.copsmodels.com/ftp/workpapr/op-16.pdf Initial version, 1977-10 (application/pdf)
https://www.copsmodels.com/elecpapr/op-16.htm Local abstract: may link to additional material. (text/html)

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Persistent link: https://EconPapers.repec.org/RePEc:cop:wpaper:op-16

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