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Understanding the evolution of trade deficits: trade elasticities of industrialized countries

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Author Info
Leland Crane
Meredith Crowley
Saad Quayyum

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Abstract

In this article, the authors present updated trade elasticities—measures of how much imports and exports change in response to income and price changes—for the U.S. and six other industrialized countries, collectively known as the Group of Seven. They find that the imports and exports of these countries are slightly more responsive to changes in a country’s total income over a period that ends in 2006, compared with a period that ends in 1994.

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Publisher Info
Article provided by Federal Reserve Bank of Chicago in its journal Economic Perspectives.

Volume (Year): (2007)
Issue (Month): Q IV ()
Pages: 2-17
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Handle: RePEc:fip:fedhep:y:2007:i:qiv:p:2-17:n:v.31no.4

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Related research
Keywords: Balance of trade ; Trade ; Exports;

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  1. Houthakker, Hendrik S & Magee, Stephen P, 1969. "Income and Price Elasticities in World Trade," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 111-25, May. [Downloadable!] (restricted)
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