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Testing For The Impact Of Inflation On Import Demand Functions

Author

Listed:
  • Arnade, Carlos
  • Dixit, Praveen

Abstract

This paper questions the standard assumption that inflation has no effect on import demand functions. We describe a simple method for testing whether proportionate changes in prices and income influence import demands. We estimate several import demand functions and provide, some evidence that inflation influences importers' demand. We also show that, when estimating import demand functions, it is difficult to test for the correct index of inflation.

Suggested Citation

  • Arnade, Carlos & Dixit, Praveen, 1989. "Testing For The Impact Of Inflation On Import Demand Functions," Staff Reports 278152, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssr:278152
    DOI: 10.22004/ag.econ.278152
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    References listed on IDEAS

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    1. U S Department of Agriculture, 1980. "Foreign Agricultural Trade Of The United States September/October 1980," Foreign Agricultural Trade of the United States (FATUS) 283517, United States Department of Agriculture, Economic Research Service.
    2. Lucas, Robert Jr., 1972. "Expectations and the neutrality of money," Journal of Economic Theory, Elsevier, vol. 4(2), pages 103-124, April.
    3. U S. Department of Agriculture, 1980. "Foreign Agricultural Trade Of The United States November/December 1980," Foreign Agricultural Trade of the United States (FATUS) 283518, United States Department of Agriculture, Economic Research Service.
    4. Sheffrin,Steven M., 1996. "Rational Expectations," Cambridge Books, Cambridge University Press, number 9780521479394, January.
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    Cited by:

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