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The "Collapse in Quality" Hypothesis

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  • Andrei A. Levchenko
  • Logan T. Lewis
  • Linda L. Tesar

Abstract

This paper evaluates the hypothesis that during the 2008-2009 collapse in international trade, imports of higher quality goods experienced larger reductions compared to low-quality imports, using data on US imports disaggregated by HS-10 product category and source country. We find little, if any, robust econometric evidence in support of this hypothesis.

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File URL: http://www.aeaweb.org/articles.php?doi=10.1257/aer.101.3.293
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Bibliographic Info

Article provided by American Economic Association in its journal American Economic Review.

Volume (Year): 101 (2011)
Issue (Month): 3 (May)
Pages: 293-97

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Handle: RePEc:aea:aecrev:v:101:y:2011:i:3:p:293-97

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  1. Amit Khandelwal, 2010. "The Long and Short (of) Quality Ladders," Review of Economic Studies, Oxford University Press, vol. 77(4), pages 1450-1476.
  2. George Alessandria & Joseph P. Kaboski, 2011. "Pricing-to-Market and the Failure of Absolute PPP," American Economic Journal: Macroeconomics, American Economic Association, vol. 3(1), pages 91-127, January.
  3. Jonathan Eaton & Sam Kortum & Brent Neiman & John Romalis, 2010. "Trade and the global recession," Working Paper Research 196, National Bank of Belgium.
  4. Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
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Cited by:
  1. Bussière, Matthieu & Chudik, Alexander & Sestieri, Giulia, 2009. "Modelling global trade flows: results from a GVAR model," Working Paper Series 1087, European Central Bank.
  2. Toshihiro OKUBO & Fukunari KIMURA & Nozomu TESHIMA, 2013. "Asian Fragmentation in the Global Financial Crisis," Working Papers DP-2013-38, Economic Research Institute for ASEAN and East Asia (ERIA).

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