Estimation of the elasticity of substitution between imported and domestically produced intermediate inputs
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
|Date of creation:||Sep 1976|
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