03349oam 22009494 450 991078822160332120230721045655.01-4623-3860-71-4527-0162-81-4518-7424-397866128446691-282-84466-0(CKB)3170000000055402(SSID)ssj0001475449(PQKBManifestationID)11839883(PQKBTitleCode)TC0001475449(PQKBWorkID)11486557(PQKB)11548547(OCoLC)680613460(MiAaPQ)EBC1606009(IMF)WPIEE2009279(EXLCZ)99317000000005540220020129d2009 uf 0engurcn|||||||||txtccrElasticity OptimismWashington, D.C. :International Monetary Fund,2009.45 pIMF Working PapersBibliographic Level Mode of Issuance: Monograph1-4519-1840-2 Include bibliographical references.In most macroeconomic models, the substitutability between domestic and foreign goods is calibrated using aggregated data. This imposes homogeneous elasticities across goods, and the calibration is only valid under this assumption. If elasticities are heterogeneous, the aggregate substitutability is a weighted average of good-specific elasticities, which in general cannot be inferred from aggregated data. We identify structurally the substitutability in US goods using multilateral trade data. We impose homogeneity, and find an aggregate elasticity similar in value to conventional macroeconomic estimates. It is more than twice larger with sectoral heterogeneity. We discuss the implications in various areas of international economics.IMF Working Papers; Working Paper ;No. 2009/279Monetary policyEconomic policyExports and ImportsimfMacroeconomicsimfPrice LevelimfInflationimfDeflationimfTrade: GeneralimfMacroeconomics: ConsumptionimfSavingimfWealthimfInternational economicsimfPrice elasticityimfImport pricesimfPrice indexesimfImportsimfConsumptionimfPricesimfEconomicsimfUnited StatesimfMonetary policy.Economic policy.Exports and ImportsMacroeconomicsPrice LevelInflationDeflationTrade: GeneralMacroeconomics: ConsumptionSavingWealthInternational economicsPrice elasticityImport pricesPrice indexesImportsConsumptionPricesEconomicsInternational Monetary Fund.DcWaIMFBOOK9910788221603321Elasticity Optimism3741520UNINA