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Exports in the Econometric Model KOSMOS

  • Johansson, Kerstin

    (National Institute of Economic Research)

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    Equations for exports of manufactured goods and for services in KOSMOS, the macroeconometric model at NIER, are estimated. The equations are interpreted as representing foreign demand for Swedish exports. The formulation is based on the Armington-assumption and demand depends on a measure of foreign income and the Swedish export price, relative to a measure of the competitor's price. The parameterestimates in both equations are reasonable and the forecasting behavior of the models is acceptable. The estimated long run price elasticities are: -1.3 for manufactured goods, and -0.7 for services. The estimated long run income elasticities are: 0.8 for manufactured goods, and 1.2 for services.

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    Paper provided by National Institute of Economic Research in its series Working Paper with number 62.

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    Length: 15 pages
    Date of creation: 01 Aug 1998
    Date of revision:
    Handle: RePEc:hhs:nierwp:0062
    Contact details of provider: Postal: National Institute of Economic Research, P.O. Box 3116, SE-103 62 Stockholm, Sweden
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    Fax: 46-(0)8-453 59 80
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    1. Gottfries, N., 1994. "Market Shares, Financial Constraints, and Pricing Behavior in the Export Industry," Papers 586, Stockholm - International Economic Studies.
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