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Elasticity of substitution and anti-dumping decisions

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  • Jørgen Hansen
  • Philipp Meinen
  • Jørgen Nielsen

Abstract

Motivated by a monopolistic competition model with market segmentation and international price discrimination, this paper analyzes whether there is an inverse relation between the elasticity of substitution and final ad valorem anti-dumping duties across products. We test this for 19 countries using data on anti-dumping from the Global Antidumping Database and US data at the 6-digit HS product level for the elasticity of substitution from Broda and Weinstein (Q J Econ 121(2):541–585, 2006 ). The results in our empirical investigation support a negative relation between the elasticity of substitution and the final ad valorem anti-dumping duties. Copyright Kiel Institute 2014

Suggested Citation

  • Jørgen Hansen & Philipp Meinen & Jørgen Nielsen, 2014. "Elasticity of substitution and anti-dumping decisions," Review of World Economics (Weltwirtschaftliches Archiv), Springer;Institut für Weltwirtschaft (Kiel Institute for the World Economy), vol. 150(4), pages 787-816, November.
    • Handle: RePEc:spr:weltar:v:150:y:2014:i:4:p:787-816
    DOI: 10.1007/s10290-014-0198-1
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    Cited by:

    1. Dmitri Nizovtsev & Alexandre Skiba, 2016. "Import Demand Elasticity and Exporter Response to Anti-Dumping Duties," The International Trade Journal, Taylor & Francis Journals, vol. 30(2), pages 83-114, March.

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    More about this item

    Keywords

    Anti-dumping; Elasticity of substitution; Dumping margin; Ad valorem duty; Monopolistic competition; F12; F13;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F13 - International Economics - - Trade - - - Trade Policy; International Trade Organizations

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