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Trade Elasticities in Aggregate Models : Estimates for 191 Countries (Inglés)

Armington’s insight that imports and domestically produced goods were imperfect substitutes has unleashed extensive estimates of the associated trade elasticity, primarily for developed countries. This notion of product differentiation, which extends symmetrically to exports and domestic goods, has underpinned trade-focused, computable general equilibrium models of developing countries, including the aggregate, compact version, the 1–2–3 model. Noting...
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