The international elasticity puzzle is worse than you think

• 成果类型: Article
• 署名作者: Fontagne, Lionel; Martin, Philippe; Orefice, Gianluca
• 署名单位: heSam Universite; Universite Pantheon-Sorbonne; Paris School of Economics; Institut d'Etudes Politiques Paris (Sciences Po)
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2018.08.011
• 发表日期: 2018
• 页码: 115-129
• 关键词: elasticity; International Trade and Macroeconomics; Export price; Firm exports

摘要

We instrument export prices with firm level electricity cost shocks and estimate three international price elasticities using firm-level export data: the elasticity of firm exports to export price, tariff and real exchange rate shocks. In standard models these three elasticities should be equal. We find that this is far from being the case. The export price elasticity is the highest, around 5, much larger than the exchange rate elasticity. The international elasticity puzzle is therefore worse than previously thought. We also show that exporters absorb one third of tariff changes in their export prices. Because we take into account this reaction of export prices to tariffs, our estimate of the tariff elasticity corrects from this omitted-variable bias. (C) 2018 Elsevier B.V. All rights reserved.