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Estimation of the elasticity of substitution between imported and domestically produced intermediate inputs

Author

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  • Chris M. Alaouze

Abstract

This 1976 paper is one of several by Alaouze about estimating Armington elasticities for the ORANI model. It postulates that during periods of high demand, domestic producers are unable to supply goods promptly and so purchasers must wait for delivery. The implicit cost of waiting for domestic goods inclines users to imported equivalents, even if domestic prices do not rise relative to foreign. Theory and data are described, but actual regression results are deferred to a later report. Please note: The PDF download of this fairly old paper is an optical scan of indifferent, but legible, quality

Suggested Citation

  • Chris M. Alaouze, 1976. "Estimation of the elasticity of substitution between imported and domestically produced intermediate inputs," Centre of Policy Studies/IMPACT Centre Working Papers op-07, Victoria University, Centre of Policy Studies/IMPACT Centre.
    • Handle: RePEc:cop:wpaper:op-07
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    File URL: https://www.copsmodels.com/ftp/workpapr/op-07.pdf
    File Function: Initial version, 1976-09
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    File URL: https://www.copsmodels.com/elecpapr/op-07.htm
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    Citations

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    Cited by:

    1. Peter Dixon & Michael Jerie & Maureen Rimmer, 2016. "Modern Trade Theory for CGE Modelling: The Armington, Krugman and Melitz Models," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 1(1), pages 1-110, June.
    2. Blanc, Elodie & Monier, Erwan & Fant, Charles & Reilly, John, 2014. "Climate Change, Water Resources and Irrigated Crop Yields: A Modeling Framework for Integrated Assessment of the US," Conference papers 332547, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    3. Arndt, Channing & Robinson, Sherman & Tarp, Finn, 2002. "Parameter estimation for a computable general equilibrium model: a maximum entropy approach," Economic Modelling, Elsevier, vol. 19(3), pages 375-398, May.
    4. Lächler, Ulrich, 1984. "The elasticity of substitution between imported and domestically produced goods in Germany," Kiel Working Papers 200, Kiel Institute for the World Economy (IfW Kiel).
    5. Chris M. Alaouze & John S. Marsden & John Zeitsch, 1977. "Estimates of the Elasticity of Substitution Between Imported and Domestically Produced Commodities at the Four Digit ASIC Level," Centre of Policy Studies/IMPACT Centre Working Papers o-11, Victoria University, Centre of Policy Studies/IMPACT Centre.
    6. Dixon, Peter B. & Jorgenson, Dale W., 2013. "Introduction," Handbook of Computable General Equilibrium Modeling, in: Peter B. Dixon & Dale Jorgenson (ed.), Handbook of Computable General Equilibrium Modeling, edition 1, volume 1, chapter 0, pages 1-22, Elsevier.
    7. Tarp, Finn & Arndt, Channing & Jensen, Henning Tarp & Robinson, Sherman & Heltberg, Rasmus, 2002. "Facing the development challenge in Mozambique: an economywide perspective," Research reports 126, International Food Policy Research Institute (IFPRI).
    8. Peter Dixon, 2022. "H. David Evans, 1941-2022: Progenitor of Computable General Equilibrium Modelling in Australia," Centre of Policy Studies/IMPACT Centre Working Papers g-331, Victoria University, Centre of Policy Studies/IMPACT Centre.
    9. Dixon, Peter B. & Rimmer, Maureen T., 2012. "Deriving the Armington, Krugman and Melitz models of trade," Conference papers 332254, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.

    More about this item

    Keywords

    Armington elasticities; import share;

    JEL classification:

    • F14 - International Economics - - Trade - - - Empirical Studies of Trade
    • C20 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - General
    • C51 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Construction and Estimation

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