Estimating Supply and Demand Functions in International Trade: A Multivariate Cointegration Analysis for Germany
AbstractIn this paper aggregate supply and demand functions for Germany's imports and exports are estimated for the period 1975:1-1999:4. Previous studies are extended in two regards: First, the multivariate estimation technique of Johansen (1988, 1991) is employed, which helps to avoid the potential bias of the predominately used single-equation approaches. Second, structural error-correction models are estimated for the import and export market. This allows for conclusions about the short-run response of buyers and sellers in both markets to changes in their forcing variables.
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Bibliographic InfoArticle provided by Justus-Liebig University Giessen, Department of Statistics and Economics in its journal Journal of Economics and Statistics.
Volume (Year): 224 (2004)
Issue (Month): 5 (September)
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More information through EDIRC
German imports and exports; cointegration; structural error-correction model;
Find related papers by JEL classification:
- C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
- F32 - International Economics - - International Finance - - - Current Account Adjustment; Short-term Capital Movements
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