IDEAS home Printed from https://ideas.repec.org/p/ags/pugtwp/331096.html

The Specification of Price and Income Elasticities in Computable General Equilibrium Models: An Application of Latent Separability

Author

Listed:
  • Gohin, Alexandre

Abstract

This paper contributes to the ongoing debate about the specifications of price and income effects in CGE models. We detail in this paper a procedure which allows to implement in such models any regular configuration of price and income effects. This procedure exploits the advantages of latent separability. By allowing some overlapping in the grouping of commodities, this separability concept offers much more flexibility than other separability structures since substitution between goods runs through many channels. This paper also provides an empirical illustration which demonstrates the applicability of our procedure and which highlights, once again, the substantial bearing of these specifications on CGE results.

Suggested Citation

  • Gohin, Alexandre, 2003. "The Specification of Price and Income Elasticities in Computable General Equilibrium Models: An Application of Latent Separability," Conference papers 331096, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    • Handle: RePEc:ags:pugtwp:331096
    as

    Download full text from publisher

    File URL: https://ageconsearch.umn.edu/record/331096/files/1014.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Arjan M. Lejour & Ruud A. De Mooij & Richard Nahuis, 2001. "EU Enlargement: Economic Implications for Countries and Industries," CESifo Working Paper Series 585, CESifo.
    2. Roberts, Donna & DeRemer, Kate, 1997. "Overview of Foreign Technical Barriers to U.S. Agricultural Exports," Staff Reports 278821, United States Department of Agriculture, Economic Research Service.
    3. Simon J. Evenett & Wolfgang Keller, 2002. "On Theories Explaining the Success of the Gravity Equation," Journal of Political Economy, University of Chicago Press, vol. 110(2), pages 281-316, April.
    4. Bergstrand, Jeffrey H, 1989. "The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory in International Trade," The Review of Economics and Statistics, MIT Press, vol. 71(1), pages 143-153, February.
    5. Arjan M. Lejour & Ruud A. De Mooij & Richard Nahuis, 2001. "EU Enlargement: Economic Implications for Countries and Industries," CESifo Working Paper Series 585, CESifo.
    6. Swann, Peter & Temple, Paul & Shurmer, Mark, 1996. "Standards and Trade Performance: The UK Experience," Economic Journal, Royal Economic Society, vol. 106(438), pages 1297-1313, September.
    7. Alan V. Deardorff & Robert M. Stern, 1997. "Measurement of Non-Tariff Barriers," OECD Economics Department Working Papers 179, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michael J. Ferrantino, 2006. "Quantifying the Trade and Economic Effects of Non-Tariff Measures," OECD Trade Policy Papers 28, OECD Publishing.
    2. Walkenhorst, Peter, 2004. "Pervasiveness and Patterns of Non-tariff Measures Affecting EU Agri-food Exports," Agricultural Economics Review, Greek Association of Agricultural Economists, vol. 5(01), pages 1-11, January.
    3. Thomas L. Vollrath & Mark J. Gehlhar & Charles B. Hallahan, 2009. "Bilateral Import Protection, Free Trade Agreements, and Other Factors Influencing Trade Flows in Agriculture and Clothing," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 298-317, June.
    4. Muhammad Ullah & Kazuo Inaba, 2014. "Liberalization and FDI Performance: Evidence from ASEAN and SAFTA Member Countries," Journal of Economic Structures, Springer;Pan-Pacific Association of Input-Output Studies (PAPAIOS), vol. 3(1), pages 1-24, December.
    5. Vicente Pinilla & Agustina Rayes, 2017. "Why did Argentina become a super-exporter of agricultural and food products during the Belle Époque (1880-1929)?," Working Papers 0107, European Historical Economics Society (EHES).
    6. Novy, Dennis, 2013. "International trade without CES: Estimating translog gravity," Journal of International Economics, Elsevier, vol. 89(2), pages 271-282.
    7. Jutta Gunther & Gresa Latifi & Judyta Lubacha-Sember & Daniel Tobelmann, 2017. "Scientific Cooperation in a German-Polish Border Region in the Light of EU Enlargement," Foresight and STI Governance, National Research University Higher School of Economics, vol. 11(1), pages 42-53.
    8. Chen, Natalie & Novy, Dennis, 2008. "International Trade Integration: A Disaggregated Approach," CEPR Discussion Papers 7103, Centre for Economic Policy Research.
    9. Miguel Tinoco-Zermeño & Francisco Venegas-Martínez & Víctor Torres-Preciado, 2014. "Growth, bank credit, and inflation in Mexico: evidence from an ARDL-bounds testing approach," Latin American Economic Review, Springer;Centro de Investigaciòn y Docencia Económica (CIDE), vol. 23(1), pages 1-22, December.
    10. Mmatlou, Kalaba & Johann, Kirsten, 2012. "Estimating the Quantity of Non-Tariff Measures SADC Meat and Milk Trade," Working Papers 206513, University of Pretoria, Department of Agricultural Economics, Extension and Rural Development.
    11. José Guimón, "undated". "Geo-economic implications of the fifth EU enlargement," Studies on the Spanish Economy 167, FEDEA.
    12. Krieger-Boden, Christiane, 2002. "European integration and the case for compensatory regional policy," Kiel Working Papers 1135, Kiel Institute for the World Economy.
    13. Yeshineh, Alekaw Kebede, 2016. "Determinants and Potentials of Foreign Trade in Ethiopia: A Gravity Model Analysis," MPRA Paper 74509, University Library of Munich, Germany.
    14. repec:ilo:ilowps:369300 is not listed on IDEAS
    15. Muhammad Ullah & Kazuo Inaba, 2012. "Impact of RTA and PTA on Bangladesh’s Export: Application of a Gravity Model," Journal of Industry, Competition and Trade, Springer, vol. 12(4), pages 445-460, December.
    16. Christophe Rault & Robert Sova & Ana Maria Sova, 2009. "Modelling international trade flows between CEEC and OECD countries," Applied Economics Letters, Taylor & Francis Journals, vol. 16(15), pages 1547-1554.
    17. Mohamed Sheriff Hamid Kamara, 2026. "The effect of free trade agreement on trade in the Economic Community of West African States (ECOWAS)," International Economics and Economic Policy, Springer, vol. 23(1), pages 1-26, February.
    18. Annekatrin Niebuhr, 2008. "The impact of EU enlargement on European border regions," International Journal of Public Policy, Inderscience Enterprises Ltd, vol. 3(3/4), pages 163-186.
    19. Alexandre Gohin & Fabienne Féménia, 2009. "Estimating Price Elasticities of Food Trade Functions: How Relevant is the CES‐based Gravity Approach?," Journal of Agricultural Economics, Wiley Blackwell, vol. 60(2), pages 253-272, June.
    20. Paas, Tiiu, 2002. "Gravity Approach for Exploring Baltic Sea Regional Integration in the Field of International Trade," Discussion Paper Series 26379, Hamburg Institute of International Economics.
    21. Shujie Yao & Pan Wang, 2012. "Has China Displaced the Outward Investments of OECD Countries?," Discussion Papers 12/10, University of Nottingham, GEP.

    More about this item

    Keywords

    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:pugtwp:331096. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: AgEcon Search (email available below). General contact details of provider: https://edirc.repec.org/data/gtpurus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.