Long-Run Industry-Level Estimates of U.S. Armington Elasticities

Content Provider	Semantic Scholar
Author	McDaniel, Christine A. Gallaway, Michael P. Rivera, Sandra A.
Copyright Year	2000
Abstract	A key relationship for trade policy analysis is the degree of substitution between imported and domestic goods due to changes in the relative price of those two goods, commonly known as the Armington elasticity. We estimate Armington elasticities for 312 industries at the 4-digit SIC level over the period 1989 to 1995. Our estimation results offer the most comprehensive, disaggregated, and up-to-date set of Armington elasticities. We report long-run estimates when possible, and find that long-run estimates are on average twice as large as the short-run estimates. This is important since the long-run estimates are more appropriate for most trade policy analysis than the short-run estimates. Further, it is shown that statistically significant differences exist within most 3-digit SIC industries, which highlights the importance of estimation at a disaggregated level since policy changes are typically focused on narrow product definitions.
File Format	PDF HTM / HTML
DOI	10.2139/ssrn.249027
Alternate Webpage(s)	https://www.gtap.agecon.purdue.edu/resources/download/1338.pdf
Alternate Webpage(s)	https://doi.org/10.2139/ssrn.249027
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article