TY  - CPAPER 
AB  - This paper investigates the robustness of CGE models with respect to the elasticities of substitution in demand between domestically produced goods and foreign goods – the so-called Armington elasticities. The Armington-type modeling of trade is still one of the most extensively used specifications in CGE modeling. For a long time the choice of the respective elasticities of substitution has not been given much attention. The most frequently used procedure was to adopt the elasticities from the literature, which meant using elasticities that had been estimated (or guessed) for a different country and often also for a different degree of data aggregation. However, recently, some authors have shown that the elasticities 1) vary more substantially over countries than had been expected and 2) are higher in more recent estimations than in those which have been published in the 1980s and 1990s.
AU  - Schürenberg-Frosch, Hannah
DA  - 2015
DA  - 2015
ID  - 332593
KW  - Research Methods/Statistical Methods
KW  - Research and Development/Tech Change/Emerging Technologies
KW  - Armington
KW  - trade elasticities
KW  - computable general equilibrium
KW  - meta-study
KW  - model validation
KW  - other data bases and data issues
L1  - https://ageconsearch.umn.edu/record/332593/files/7695.pdf
L2  - https://ageconsearch.umn.edu/record/332593/files/7695.pdf
L4  - https://ageconsearch.umn.edu/record/332593/files/7695.pdf
LA  - eng
LA  - English
LK  - https://ageconsearch.umn.edu/record/332593/files/7695.pdf
N1  - Presented at the 18th Annual Conference on Global Economic Analysis, Melbourne, Australia
N2  - This paper investigates the robustness of CGE models with respect to the elasticities of substitution in demand between domestically produced goods and foreign goods – the so-called Armington elasticities. The Armington-type modeling of trade is still one of the most extensively used specifications in CGE modeling. For a long time the choice of the respective elasticities of substitution has not been given much attention. The most frequently used procedure was to adopt the elasticities from the literature, which meant using elasticities that had been estimated (or guessed) for a different country and often also for a different degree of data aggregation. However, recently, some authors have shown that the elasticities 1) vary more substantially over countries than had been expected and 2) are higher in more recent estimations than in those which have been published in the 1980s and 1990s.
PY  - 2015
PY  - 2015
T1  - We couldn't care less about Armington elasticities - but should we?  A systematic analysis of the influence of Armington elasticity misspecification on model results
TI  - We couldn't care less about Armington elasticities - but should we?  A systematic analysis of the influence of Armington elasticity misspecification on model results
UR  - https://ageconsearch.umn.edu/record/332593/files/7695.pdf
VL  - 2015
Y1  - 2015
ER  -