Spectral estimation of secular and cyclical elasticities for bilateral trade
The paper uses spectral methods to estimate income and price elasticities for trade among Canada, Germany, Japan, the United Kingdom, the United States, other industrial countries, OPEC, and non-OPEC developing countries. By focusing on bilateral trade data, the paper avoids the aggregation biases associated with multilateral data. By differentiating between secular and cyclical elasticities, the paper recognizes that trade responses to secular expansions and to domestic bottlenecks need not be the same. Finally, by relying on spectral analysis, the paper isolates the secular and cyclical components of the data and thus avoids the drawbacks of time-domain analyses where a time trendproxies secular factors. To emphasize the usefulness of bilateral trade elasticities, the analysis re-examines the asymmetry in income elasticities noted by Houthakker and Magee and evaluates the loss of information associated with relying on multilateral trade data.
Volume (Year): 5 (1992)
Issue (Month): 2 (Autumn)
|Contact details of provider:|| Web page: http://www.taloustieteellinenyhdistys.fi|
More information through EDIRC
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Haynes, Stephen E & Stone, Joe A, 1983. "Secular and Cyclical Responses of U.S. Trade to Income: An Evaluation of Traditional Models," The Review of Economics and Statistics, MIT Press, vol. 65(1), pages 87-95, February.
- Marston, Richard, 1971. "Income effects and delivery lags in British import demand: 1955-1967," Journal of International Economics, Elsevier, vol. 1(4), pages 375-399, November.
- R. F. Engle, 1972.
"Band Spectrum Regressions,"
96, Massachusetts Institute of Technology (MIT), Department of Economics.
When requesting a correction, please mention this item's handle: RePEc:fep:journl:v:5:y:1992:i:2:p:91-97. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Editorial Secretary)
If references are entirely missing, you can add them using this form.