The elasticity of trade: Estimates and evidence

• 成果类型: Article
• 署名作者: Simonovska, Ina; Waugh, Michael E.
• 署名单位: University of California System; University of California Davis; National Bureau of Economic Research; New York University
• 刊物名称: JOURNAL OF INTERNATIONAL ECONOMICS
• ISSN/ISSBN: 0022-1996
• DOI: 10.1016/j.jinteco.2013.10.001
• 发表日期: 2014
• 页码: 34-50
• 关键词: Elasticity of trade; Bilateral; gravity; price dispersion; indirect inference

摘要

Quantitative results from a large class of structural gravity models of international trade depend critically on the elasticity of trade with respect to trade frictions. We develop a new simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data and we use it within Eaton and Kortum's (2002) Ricardian model. We apply our estimator to disaggregate price and trade-flow data for 123 countries in the year 2004. Our method yields a trade elasticity of roughly four, nearly fifty percent lower than Eaton and Kortum's (2002) approach. This difference doubles the welfare gains from international trade. (C) 2013 Elsevier B.V. All rights reserved.