The Elasticity of Substitution in Demand for Non-Tradable Goods in Latin America: The Case of Argentina

19 Pages Posted: 19 Apr 2011

See all articles by Martín González-Rozada

Martín González-Rozada

Universidad Torcuato Di Tella

Pablo A. Neumeyer

Universidad Torcuato Di Tella

Alejandra Clemente

affiliation not provided to SSRN

Nicholas Trachter

Federal Reserve Banks - Federal Reserve Bank of Richmond

Date Written: August 2004

Abstract

The objective of this paper is to estimate the elasticity of substitution in the demand for non-tradable goods relative to tradable goods in Argentina. This parameter plays a crucial role in the analysis of the macroeconomic equilibrium of a small open economy (Mendoza, Galindo and Izquierdo, 2003). Using two data sets, estimates of approximately 0. 40 and 0. 48, respectively, are found for this elasticity.

Suggested Citation

González Rozada, Martín and Neumeyer, Pablo A. and Clemente, Alejandra and Trachter, Nicholas, The Elasticity of Substitution in Demand for Non-Tradable Goods in Latin America: The Case of Argentina (August 2004). IDB Working Paper No. 190, Available at SSRN: https://ssrn.com/abstract=1814742 or http://dx.doi.org/10.2139/ssrn.1814742

Martín González Rozada (Contact Author)

Universidad Torcuato Di Tella ( email )

Saenz Valiente 1010
Buenos Aires, C1428BIJ
Argentina
5411 51697318 (Phone)

HOME PAGE: http://www.utdt.edu/profesores/mrozada

Pablo A. Neumeyer

Universidad Torcuato Di Tella ( email )

Minones 2177
C1428ATG
1428 Buenos Aires
Argentina
54 11 4792 6506 (Phone)

Alejandra Clemente

affiliation not provided to SSRN

No Address Available

Nicholas Trachter

Federal Reserve Banks - Federal Reserve Bank of Richmond ( email )

P.O. Box 27622
Richmond, VA 23261
United States

Do you have a job opening that you would like to promote on SSRN?

Paper statistics

Downloads
91
Abstract Views
1,196
Rank
521,271
PlumX Metrics