CoPS/IMPACT Working Paper Number OP-16

Title: Estimation of the elasticity of substitution between imported and domestically produced intermediate inputs

Author: Chris M. Alaouze


This 1977 paper is one of several by Alaouze about estimating Armington elasticities for the ORANI model. It postulates that during periods of high demand, domestic producers are unable to supply goods promptly and so purchasers must wait for delivery. The implicit cost of waiting for domestic goods inclines users to imported equivalents, even if domestic prices do not rise relative to foreign. A measure or index for "pressure of demand" is described which is then used as a regressor to explain import demand.

Please note: The PDF download of this fairly old paper is an optical scan of indifferent, but legible, quality

JEL Classification: F14, C20, C51.

Keywords: Armington elasticities, import share.

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