EconPapers    
Economics at your fingertips  
 

Import Price-Elasticities: Reconsidering the Evidence

Hélène Erkel-Rousse and Daniel Mirza ()

Papiers d'Economie Mathématique et Applications from Université Panthéon-Sorbonne (Paris 1)

Abstract: Recent geography and trade empirical studies based on monopolistic competition [Hanson, 1998 ; Head and Ries, 1999 ; Hummels, 1999], suggest high levels of trade price elasticities (between 3 and11). However, direct estimations of price-elasticities in trade equations, using price indexes at aggregate or industry levels, lead to much lower values than those predicted by theory (usually around unity). In this paper, we show that these inconclusive results may be due to an econometric misspecification of these equations, measurement errors in import price indexes as well as endogeneity between prices and trade quantities.

Keywords: COMPETITION; PRICES; TRADE; ELASTICITY (search for similar items in EconPapers)
JEL-codes: C2 C3 F1 (search for similar items in EconPapers)
Date: 2000
References: Add references at CitEc
Citations: View citations in EconPapers (9) Track citations by RSS feed

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
Journal Article: Import price elasticities: reconsidering the evidence (2002) Downloads
Working Paper: Import Price-Elastcities: Reconsidering the Evidence (2000) 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: https://EconPapers.repec.org/RePEc:fth:pariem:2000.52

Access Statistics for this paper

More papers in Papiers d'Economie Mathématique et Applications from Université Panthéon-Sorbonne (Paris 1) France; Universite de Paris I - Pantheon- Sorbonne, 12 Place de Pantheon-75005 Paris, France. Contact information at EDIRC.
Bibliographic data for series maintained by Thomas Krichel ().

 
Page updated 2019-10-24
Handle: RePEc:fth:pariem:2000.52