Bussière, Matthieu
[Author]
;
Ghironi, Fabio
[Other];
Callegari, Giovanni
[Other];
Sestieri, Giulia
[Other];
Yamano, Norihiko
[Other]National Bureau of Economic Research
Published:
Cambridge, Mass: National Bureau of Economic Research, December 2011
Published in:NBER working paper series ; no. w17712
Extent:
1 Online-Ressource
Language:
English
DOI:
10.3386/w17712
Identifier:
Reproduction note:
Hardcopy version available to institutional subscribers
Origination:
Footnote:
Mode of access: World Wide Web
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Description:
This paper introduces a new methodology for the estimation of demand trade elasticities based on an import intensity-adjusted measure of aggregate demand, with the foundation of a stylized theoretical model. We compute the import intensity of demand components by using the OECD Input-Output tables. We argue that the composition of demand plays a key role in trade dynamics because of the large movements in the most import-intensive categories of expenditure (especially investment, but also exports). We provide evidence in favor of these mechanisms for a panel of 18 OECD countries, paying particular attention to the 2008-09 Great Trade Collapse