Mann and Pluck prepare new estimates of the elasticity of U.S. trade flows using bilateral trade data for 31 countries, different measures of expenditure, and including alternative proxies for global supply-cum-variety.
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Mann and Pluck prepare new estimates of the elasticity of U.S. trade flows using bilateral trade data for 31 countries, different measures of expenditure, and including alternative proxies for global supply-cum-variety. They examine four different categories of goods based on the Bureau of Economic Analysis's "end-use" classification system: autos, industrial supplies and materials (excluding energy), consumer goods, and capital goods. These four categories behave differently from a panel aggregated over the full commodity set. The authors find that industrial and developing countries have different income and relative price elasticities for these four product groups. The...
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