Estimation of Armington Elasticities in an Energy Cge Model for Europe

Content Provider	Semantic Scholar
Author	Németh, Gabriella T. Szabó, László Císcar, Juan Carlos
Copyright Year	2008
Abstract	The main purpose of the present article is to econometrically estimate the Armington elasticities of the computable general equilibrium model called GEM-E3 and, in particular, the energy-related sectors. In the estimation we follow the model's staged budget optimisation procedure of the consumer by first optimising between domestically produced and imported goods, and then by country of origin. We estimate the Armington elasticities in a panel data econometric framework with dynamic adjustment to capture both the long and short term elasticities for five aggregated sectors of Europe. The estimated long-term elasticities are in line with the literature, but higher than those used in the GEM-E3 model. The results suggest that in general consumer choice appear to be more price sensitive between the domestic and the composite imported goods and amongst the importers than assumed in the model.
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Alternate Webpage(s)	https://ecomod.net/sites/default/files/document-conference/ecomod2008/770.pdf
Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article