Import Elasticities Revisited

Hong, Pingfan

doi:10.2139/ssrn.288599

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Import Elasticities Revisited

DESA Discussion Paper No. 10

18 Pages Posted: 2 Nov 2001

See all articles by Pingfan Hong

Pingfan Hong

United Nations - Department of Economic and Social Affairs (DESA)

Date Written: September 1999

Abstract

Should the long run income elasticity of aggregate import demand be equal to one, as implied by the neoclassical demand theory? Why are many empirical estimates of income elasticities not equal to one, and why are some of them very high? The author addresses these and some other related questions by revisiting the relevant theories and empirical modeling frameworks.

Keywords: Trade Elasticity, Trade model

JEL Classification: F10, C32

Suggested Citation: Suggested Citation

Hong, Pingfan, Import Elasticities Revisited (September 1999). DESA Discussion Paper No. 10, Available at SSRN: https://ssrn.com/abstract=288599 or http://dx.doi.org/10.2139/ssrn.288599