IDEAS home Printed from
MyIDEAS: Log in (now much improved!) to save this paper

Prices and Market Shares in the International Machinery Trade

Listed author(s):
  • Irving B. Kravis
  • Robert E. Lipsey
  • Dennis M. Bushe

We use new international price measures we have developed for machinery and transport equipment to explain changes in exports and export shares of the United States, Germany, and Japan. The effects of relative price changes on export shares are fairly large, producing relative quantity changes that are 50 to 100 per cent and as much as 200 per cent greater than the price changes. The effects of price changes seem to stretch out over 3 to 5 years and possibly longer. We also find that delays between order and delivery may affect measures of export quantity and of its response to price. Equations for individual countries suggest that exports by the United States are most responsive to relative price changes and those of Germany least responsive. The income elasticities are very sensitive to the inclusion or exclusion of a time variable to measure "unexplained" trends in exports. A system of supply and demand equations is developed in which the supply of exports depends on a country's export and domestic prices for the same goods, as well as on its real income. The supply elasticities range from about 2% for Germany to over 7 for the United States, implying that firms switch easily between domestic sales and exports.

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.

File URL:
Download Restriction: no

Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 0521.

in new window

Date of creation: Jul 1980
Publication status: published as Kravis, Irving B. and Lipsey, Robert E. "Prices and Market Shares in the International Machinery Trade." The Review of Economics and Statistics, Vol. LXIV, No. 1, (February 1982), pp. 110-116. 6
Handle: RePEc:nbr:nberwo:0521
Contact details of provider: Postal:
National Bureau of Economic Research, 1050 Massachusetts Avenue Cambridge, MA 02138, U.S.A.

Phone: 617-868-3900
Web page:

More information through EDIRC

No references listed on IDEAS
You can help add them by filling out this form.

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

When requesting a correction, please mention this item's handle: RePEc:nbr:nberwo:0521. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ()

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 references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.

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

This information is provided to you by IDEAS at the Research Division of the Federal Reserve Bank of St. Louis using RePEc data.