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Armington Elasticities (armington + elasticity)

Distribution by Scientific Domains
Business, Economics, Finance and Accounting100%

Selected Abstracts

Time-varying Armington elasticity and country-of-origin bias: from the dynamic perspective of the Japanese demand for beef imports

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 1 2010
Shigekazu Kawashima
Elasticities of substitution, often called Armington elasticities, reflect incomplete substitutability because of perceived product characteristics. This study divides the determinants of the Japanese demand for beef imports into two factors: (i) substitution elasticity and (ii) country-of-origin bias, and demonstrate how these measurements are associated with trade policy and food scare events. The Japanese beef industry serves as a case study to evaluate the multifold impact of import liberalisation and a series of bovine spongiform encephalopathy (BSE) outbreaks. A time-varying parameter model is used to shed light on the dynamic effects of the import liberalisation and BSE outbreaks on the measurements. The estimation results reveal that the estimated substitutability and country-of-origin bias are very sensitive to the BSE cases, but not to the process of trade liberalisation. The results also confirm that as a result of the BSE outbreaks, the major factor of the Japanese demand for beef imports has changed from relative prices to the country-of-origin effect, thereby emphasising the importance of a traceability system and promotional activities, which would help in the formation of the country-of-origin effect. [source]

Armington elasticities in intermediate inputs trade: a problem in using multilateral trade data

CANADIAN JOURNAL OF ECONOMICS, Issue 4 2004
Mika Saito
In particular, the former tends to be higher than the latter when trade consists largely of intermediate inputs. Given that the variety of intermediate inputs traded across borders is increasing rapidly and that the effect of this increase is not adequately captured in multilateral trade data, the evidence shows that the employment of multilateral trade data to estimate Armington elasticities needs caution. JEL classification: F14, C51 Elasticités d'Armington dans le commerce des intrants intermédiaires: un problème dans l'utilisation des données sur le commerce international multilatéral., Ce texte montre que les estimations des élasticités d'Armington (c'est-à-dire les élasticités de substitution entre groupes de biens d'origines différentes) basées sur les données de commerce multilatéral peuvent être différentes de celles obtenues en utilisant des données de commerce bilatéral. En particulier, les premières sont en général supérieures aux secondes lorsque les échanges concernent surtout des biens intermédiaires. Comme la variété des biens intermédiaires échangés augmente rapidement et que les effets de cette augmentation ne sont pas capturés de façon adéquate dans les données de commerce multilatéral, notre résultat suggère la prudence lors de l'estimation des élasticités d'Armington à partir de données de commerce multilatéral. [source]

Time-varying Armington elasticity and country-of-origin bias: from the dynamic perspective of the Japanese demand for beef imports

AUSTRALIAN JOURNAL OF AGRICULTURAL & RESOURCE ECONOMICS, Issue 1 2010
Shigekazu Kawashima
Elasticities of substitution, often called Armington elasticities, reflect incomplete substitutability because of perceived product characteristics. This study divides the determinants of the Japanese demand for beef imports into two factors: (i) substitution elasticity and (ii) country-of-origin bias, and demonstrate how these measurements are associated with trade policy and food scare events. The Japanese beef industry serves as a case study to evaluate the multifold impact of import liberalisation and a series of bovine spongiform encephalopathy (BSE) outbreaks. A time-varying parameter model is used to shed light on the dynamic effects of the import liberalisation and BSE outbreaks on the measurements. The estimation results reveal that the estimated substitutability and country-of-origin bias are very sensitive to the BSE cases, but not to the process of trade liberalisation. The results also confirm that as a result of the BSE outbreaks, the major factor of the Japanese demand for beef imports has changed from relative prices to the country-of-origin effect, thereby emphasising the importance of a traceability system and promotional activities, which would help in the formation of the country-of-origin effect. [source]