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https://hdl.handle.net/10419/58402
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DC Field | Value | Language |
---|---|---|
dc.contributor.author | Simonovska, Ina | en |
dc.contributor.author | Waugh, Michael | en |
dc.date.accessioned | 2012-06-07 | - |
dc.date.accessioned | 2012-06-12T13:34:10Z | - |
dc.date.available | 2012-06-12T13:34:10Z | - |
dc.date.issued | 2011 | - |
dc.identifier.uri | http://hdl.handle.net/10419/58402 | - |
dc.description.abstract | Quantitative results from a large class of structural gravity models of international trade depend critically on the elasticity of trade with respect to trade frictions. We develop a new simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data and we use it within Eaton and Kortum's (2002) Ricardian model. We apply our estimator to new disaggregate price and trade-flow data for 123 countries in the year 2004. Our method yields a trade elasticity of roughly four, nearly fifty percent lower than Eaton and Kortum's (2002) approach. Moreover, robustness exercises result in trade elasticity estimates that are both lower and fall within a narrower range relative to the existing literature. This difference doubles the welfare gains from international trade. | en |
dc.language.iso | eng | en |
dc.publisher | |aUniversity of California, Department of Economics |cDavis, CA | en |
dc.relation.ispartofseries | |aWorking Paper |x11-2 | en |
dc.subject.jel | F10 | en |
dc.subject.jel | F11 | en |
dc.subject.jel | F14 | en |
dc.subject.jel | F17 | en |
dc.subject.ddc | 330 | en |
dc.subject.keyword | elasticity of trade | en |
dc.subject.keyword | bilateral | en |
dc.subject.keyword | gravity | en |
dc.subject.keyword | price dispersion | en |
dc.subject.keyword | indirect inference | en |
dc.title | The elasticity of trade: Estimates and evidence | - |
dc.type | Working Paper | en |
dc.identifier.ppn | 71727988X | en |
dc.rights | http://www.econstor.eu/dspace/Nutzungsbedingungen | en |
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