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Terms of Trade Effects: Theory and Methods of Measurement

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Author Info
Marshall Reinsdorf (Bureau of Economic Analysis)
Abstract

Changes in export and import prices that increase the opportunity for trading gains raise real income, and changes in these prices that reduce trading gains reduce real income. Even though trade is less important for the US economy than it is for many other economies, trading gains have a median absolute effect on US real GDI of 0.2 percentage points in annual data.

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Paper provided by Bureau of Economic Analysis in its series BEA Working Papers with number 0045.

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Date of creation: Jan 2009
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Handle: RePEc:bea:wpaper:0045

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E60 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - General

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This page was last updated on 2009-12-2.

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