Elasticities and trade imbalances: The significance of the Marshall/Lerner condition

John David Pitchford

No 119, Discussion Papers, Series II from University of Konstanz, Collaborative Research Centre (SFB) 178 "Internationalization of the Economy"

Abstract: The Marshall/Lerner condition is examined in a context in which full account is taken of the intertemporal optimizing conditions inherent in the balance of payments. This analysis suggests that the condition has only a very limited significance.

Date: 1990
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