MARC Record from Library of Congress

LEADER: 01970nam a22002897a 4500
001 2011656009
003 DLC
005 20110517144302.0
007 cr |||||||||||
008 110517s2011 mau sb 000 0 eng
010 $a 2011656009
040 $aDLC$cDLC
050 00 $aHB1
100 1 $aSimonovska, Ina.
245 14 $aThe elasticity of trade$h[electronic resource] :$bestimates and evidence /$cIna Simonovska, Michael E. Waugh.
260 $aCambridge, MA :$bNational Bureau of Economic Research,$cc2011.
490 1 $aNBER working paper series ;$vworking paper 16796
538 $aSystem requirements: Adobe Acrobat Reader.
538 $aMode of access: World Wide Web.
500 $aTitle from PDF file as viewed on 5/17/2011.
530 $aAlso available in print.
504 $aIncludes bibliographical references.
520 3 $a"Quantitative results from a large class of international trade models depend critically on the elasticity of trade with respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate price and trade-flow data using the Ricardian model. We motivate our estimator by proving that the estimator developed in Eaton and Kortum (2002) is biased in any finite sample. We quantitatively show that the bias is severe and that the data requirements necessary to eliminate it in practice are extreme. Applying our estimator to new disaggregate price and trade-flow data for 123 countries in the year 2004 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"--National Bureau of Economic Research web site.
700 1 $aWaugh, Michael E.
710 2 $aNational Bureau of Economic Research.
830 0 $aWorking paper series (National Bureau of Economic Research : Online) ;$vworking paper no. 16796.
856 40 $uhttp://www.nber.org/papers/w16796