TESTING FOR THE IMPACT OF INFLATION ON IMPORT DEMAND FUNCTIONS

This paper questions the standard assumption that inflation has no effect on import demand functions. We describe a simple method for testing whether proportionate changes in prices and income influence import demands. We estimate several import demand functions and provide, some evidence that inflation influences importers' demand. We also show that, when estimating import demand functions, it is difficult to test for the correct index of inflation.


Issue Date:
1989-01
Publication Type:
Report
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/278152
Language:
English
Total Pages:
22
Series Statement:
AGES 89-3




 Record created 2018-10-12, last modified 2020-10-28

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