LEADER 04569oam 22010694 450 001 9910970436703321 005 20250426110141.0 010 $a9786612844669 010 $a9781462338603 010 $a1462338607 010 $a9781452701622 010 $a1452701628 010 $a9781451874242 010 $a1451874243 010 $a9781282844667 010 $a1282844660 035 $a(CKB)3170000000055402 035 $a(SSID)ssj0001475449 035 $a(PQKBManifestationID)11839883 035 $a(PQKBTitleCode)TC0001475449 035 $a(PQKBWorkID)11486557 035 $a(PQKB)11548547 035 $a(OCoLC)680613460 035 $a(MiAaPQ)EBC1606009 035 $a(IMF)WPIEE2009279 035 $a(IMF)WPIEA2009279 035 $aWPIEA2009279 035 $a(EXLCZ)993170000000055402 100 $a20020129d2009 uf 0 101 0 $aeng 135 $aurcn||||||||| 181 $ctxt 182 $cc 183 $acr 200 10$aElasticity Optimism 205 $a1st ed. 210 1$aWashington, D.C. :$cInternational Monetary Fund,$d2009. 215 $a45 p 225 1 $aIMF Working Papers 300 $aBibliographic Level Mode of Issuance: Monograph 311 08$a9781451918403 311 08$a1451918402 320 $aInclude bibliographical references. 327 $aCover Page -- Title Page -- Copyright Page -- Contents -- I Introduction -- II Trade Elasticities: Practice ahead of Theory -- A Practice -- B Theory -- 1 No Firm Entry -- 2 Allowing for Firm Entry -- 3 The Price Elasticity of Imports -- III Identification -- A Microeconomic Estimates -- B Homogeneous Estimates -- C Data -- IV Results and Relevance -- A Microeconomic Results -- 1 Microeconomic estimates of the elasticity of substitution -- B Macroeconomic Results -- 1 Estimation with common correlated effects -- C Relevance -- 2 The J-curve in a two-sector BKK model -- D Stability -- 2 Variants on the weights -- 3 Estimation without common correlated effects -- V Conclusion -- A Aggregation and Homogeneity -- B Heterogeneous Supply -- C The Price Elasticity of Imports -- D Derivation of the Supply Curve -- E Estimated Variances -- F A Two-Sector Version of BKK -- F. 1 Benchmark Parameter Values taken from BKK (1994) -- References -- Footnotes. 330 3 $aIn most macroeconomic models, the substitutability between domestic and foreign goods is calibrated using aggregated data. This imposes homogeneous elasticities across goods, and the calibration is only valid under this assumption. If elasticities are heterogeneous, the aggregate substitutability is a weighted average of good-specific elasticities, which in general cannot be inferred from aggregated data. We identify structurally the substitutability in US goods using multilateral trade data. We impose homogeneity, and find an aggregate elasticity similar in value to conventional macroeconomic estimates. It is more than twice larger with sectoral heterogeneity. We discuss the implications in various areas of international economics. 410 0$aIMF Working Papers; Working Paper ;$vNo. 2009/279 606 $aMonetary policy 606 $aEconomic policy 606 $aConsumption$2imf 606 $aDeflation$2imf 606 $aEconomics$2imf 606 $aExports and Imports$2imf 606 $aImport prices$2imf 606 $aImports$2imf 606 $aInflation$2imf 606 $aInternational economics$2imf 606 $aMacroeconomics$2imf 606 $aMacroeconomics: Consumption$2imf 606 $aPrice elasticity$2imf 606 $aPrice indexes$2imf 606 $aPrice Level$2imf 606 $aPrices$2imf 606 $aSaving$2imf 606 $aTrade: General$2imf 606 $aWealth$2imf 607 $aUnited States$2imf 615 0$aMonetary policy. 615 0$aEconomic policy. 615 7$aConsumption 615 7$aDeflation 615 7$aEconomics 615 7$aExports and Imports 615 7$aImport prices 615 7$aImports 615 7$aInflation 615 7$aInternational economics 615 7$aMacroeconomics 615 7$aMacroeconomics: Consumption 615 7$aPrice elasticity 615 7$aPrice indexes 615 7$aPrice Level 615 7$aPrices 615 7$aSaving 615 7$aTrade: General 615 7$aWealth 676 $a338.192367 712 02$aInternational Monetary Fund. 801 0$bDcWaIMF 906 $aBOOK 912 $a9910970436703321 996 $aElasticity Optimism$94372951 997 $aUNINA