The Experts below are selected from a list of 11844 Experts worldwide ranked by ideXlab platform
Isabelle Mejean - One of the best experts on this subject based on the ideXlab platform.
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Trade Elasticities
Review of International Economics, 2017Co-Authors: Jean Imbs, Isabelle MejeanAbstract:Conventional aggregate Trade Elasticity estimates hardly vary across countries. We introduce an aggregate Elasticity that is implied by theory: It is the value that equates the welfare gains from Trade as implied by one- and multi-sector versions of the model in Arkolakis et al. (American Economic Review, 102 (2012):94–130). These estimates are predicated on sector-level values for Trade elasticites, which we provide at three-digit levels for 28 developed and developing countries. The values for this aggregate Elasticity vary greatly across countries, and they do so because of countries' patterns of production and because a given sector-level Elasticity displays considerable cross-country heterogeneity.
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Elasticity Optimism
American Economic Journal: Macroeconomics, 2015Co-Authors: Jean Imbs, Isabelle MejeanAbstract:On average, estimates of Trade elasticities are smaller in aggregate data than at sector level. This is an artifact of aggregation. Estimations performed on aggregate data constrain sector elasticities to homogeneity, which creates a heterogeneity bias. The paper shows such a bias exists in two prominent approaches used to estimate elasticities, which has meaningful consequences for the calibration of the Trade Elasticity in one-sector, aggregative models. With elasticities calibrated to aggregate data, macroeconomic models can have predictions at odds with the implications of their multi-sector counterparts. They do not when elasticities are calibrated using a weighted average of sector elasticities.
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Elasticity Optimism
American Economic Journal: Macroeconomics, 2015Co-Authors: Jean Imbs, Isabelle MejeanAbstract:On average, estimates of Trade elasticities are smaller in aggregate data than at sector level. This is an artifact of aggregation. Estimations performed on aggregate data constrain sector elasticities to homogeneity, which creates a heterogeneity bias. The paper shows such a bias exists in two prominent approaches used to estimate elasticities, which has meaningful consequences for the calibration of the Trade Elasticity in one-sector, aggregative models. With elasticities calibrated to aggregate data, macroeconomic models can have predictions at odds with the implications of their multi-sector counterparts. They do not when elasticities are calibrated using a weighted average of sector elasticities. (JEL C51, F13, F14, F41, O19)
Mathias Thoenig - One of the best experts on this subject based on the ideXlab platform.
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From Micro to Macro: Demand, Supply, and Heterogeneity in the Trade Elasticity
2020Co-Authors: Maria Bas, Thierry Mayer, Mathias ThoenigAbstract:Models of heterogeneous firms with selection into export market participation generically exhibit aggregate Trade elasticities that vary across country-pairs. Only when heterogeneity is assumed Pareto-distributed do all elasticities collapse into an unique Elasticity, estimable with a gravity equation. This paper provides a theory-based method for quantifying country-pair specific elasticities when moving away from Pareto, i.e. when gravity does not hold. Combining two firm-level customs datasets for which we observe French and Chinese individual sales on the same destination market over the 2000-2006 period, we are able to estimate all the components of the dyadic Elasticity: i) the demand-side parameter that governs the intensive margin and ii) the supply side parameters that drive the extensive margin. These components are then assembled under theoretical guidance to calculate bilateral aggregate elasticities over the whole set of destinations, and their decomposition into different margins. Our predictions fit well with econometric estimates, supporting our view that micro-data is a key element in the quantification of non-constant macro Trade elasticities.
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From micro to macro: Demand, supply, and heterogeneity in the Trade Elasticity
Journal of International Economics, 2017Co-Authors: Maria Bas, Thierry Mayer, Mathias ThoenigAbstract:Models of heterogeneous firms with selection into export market participation generically exhibit aggregate Trade elasticities that vary across country-pairs. Only when heterogeneity is assumed Pareto-distributed do all elasticities collapse into a unique Elasticity, estimable with a gravity equation. This paper provides a theory-consistent methodology for quantifying country-pair specific aggregate elasticities when moving away from Pareto, i.e. when gravity does not hold. Combining two firm-level customs datasets for which we observe French and Chinese individual sales on the same destination market over the 2000–2006 period, we are able to estimate all the components of the bilateral aggregate Elasticity: i) the demand-side parameter that governs the intensive margin and ii) the supply side parameters that drive the extensive margin. These components are then used to calculate theoretical predictions of bilateral aggregate elasticities over the whole set of destinations, and how those elasticities decompose into different margins. Our predictions fit well with econometric estimates, supporting our view that micro-data is a key element in the quantification of aggregate Trade elasticities.
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From micro to macro: Demand, supply, and heterogeneity in the Trade Elasticity ☆
Journal of International Economics, 2017Co-Authors: Maria Bas, Thierry Mayer, Mathias ThoenigAbstract:Models of heterogeneous firms with selection into export market participation generically exhibit aggregate Trade elasticities that vary across country-pairs. Only when heterogeneity is assumed Pareto-distributed do all elasticities collapse into an unique Elasticity, estimable with a gravity equation. This paper provides a theory-based method for quantifying country-pair specific elasticities when moving away from Pareto, i.e. when gravity does not hold. Combining two firm-level customs datasets for which we observe French and Chinese individual sales on the same destination market over the 2000-2006 period, we are able to estimate all the components of the dyadic Elasticity: i) the demand-side parameter that governs the intensive margin and ii) the supply side parameters that drive the extensive margin. These components are then assembled under theoretical guidance to calculate bilateral aggregate elasticities over the whole set of destinations, and their decomposition into different margins. Our predictions fit well with econometric estimates, supporting our view that micro-data is a key element in the quantification of non-constant macro Trade elasticities.
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From micro to macro: Demand and supply-side determinants of the Trade Elasticity
2014Co-Authors: Maria Bas, Thierry Mayer, Mathias ThoenigAbstract:This paper combines two rm-level customs datasets for French and Chinese exporters to estimate the Trade Elasticity of exports with respect to taris at the rm-level. This Elasticity reveals the consumer’s response to a change in Trade cost: a demand side parameter. We then show that, when dropping the assumption of Pareto-distributed heterogeneity, this parameter is important to explain the aggregate reaction of bilateral exports to Trade cost shocks. Furthermore, in this No-Pareto case, the Trade Elasticity is not constant, and varies across country pairs. Using our estimated demand-side parameter and a key supply-side parameter measuring the degree of dispersion of rms’ productivity, we construct the predicted bilateral elasticities under the assumption of log-normally distributed productivity. The prediction on the aggregate elasticities, and its decomposition into dierent margins ts well with our aggregate estimates using French and Chinese data, suggesting that both demand and supplyside determinants matter in the reaction of Trade patterns to Trade costs variations, and that micro-data is a key element in the estimation of the macro-level Elasticity.
Michele Ruta - One of the best experts on this subject based on the ideXlab platform.
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the global Trade slowdown cyclical or structural
IMF Working Papers, 2015Co-Authors: Cristina Constantinescu, Aaditya Mattoo, Michele RutaAbstract:This paper focuses on the sluggish growth of world Trade relative to income growth in recent years. The analysis uses an empirical strategy based on an error correction model to assess whether the global Trade slowdown is structural or cyclical. An estimate of the relationship between Trade and income in the past four decades reveals that the long-term Trade Elasticity rose sharply in the 1990s, but declined significantly in the 2000s even before the global financial crisis. These results suggest that Trade is growing slowly not only because of slow growth of Gross Domestic Product (GDP), but also because of a structural change in the Trade-GDP relationship in recent years. The available evidence suggests that the explanation may lie in the slowing pace of international vertical specialization rather than increasing protection or the changing composition of Trade and GDP.
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the global Trade slowdown cyclical or structural
The World Bank Economic Review, 2015Co-Authors: Cristina Constantinescu, Aaditya Mattoo, Michele RutaAbstract:This paper focuses on the sluggish growth of world Trade relative to income growth in recent years. The analysis uses an empirical strategy based on an error correction model to assess whether the global Trade slowdown is structural or cyclical. An estimate of the relationship between Trade and income in the past four decades reveals that the long-term Trade Elasticity rose sharply in the 1990s, but declined significantly in the 2000s even before the global financial crisis. These results suggest that Trade is growing slowly not only because of slow growth of gross domestic product, but also because of a structural change in the Trade-gross domestic product relationship in recent years. The available evidence suggests that the explanation may lie in the slowing pace of international vertical specialization rather than increasing protection or the changing composition of Trade and gross domestic product.
Jean Imbs - One of the best experts on this subject based on the ideXlab platform.
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Trade Elasticities
Review of International Economics, 2017Co-Authors: Jean Imbs, Isabelle MejeanAbstract:Conventional aggregate Trade Elasticity estimates hardly vary across countries. We introduce an aggregate Elasticity that is implied by theory: It is the value that equates the welfare gains from Trade as implied by one- and multi-sector versions of the model in Arkolakis et al. (American Economic Review, 102 (2012):94–130). These estimates are predicated on sector-level values for Trade elasticites, which we provide at three-digit levels for 28 developed and developing countries. The values for this aggregate Elasticity vary greatly across countries, and they do so because of countries' patterns of production and because a given sector-level Elasticity displays considerable cross-country heterogeneity.
-
Elasticity Optimism
American Economic Journal: Macroeconomics, 2015Co-Authors: Jean Imbs, Isabelle MejeanAbstract:On average, estimates of Trade elasticities are smaller in aggregate data than at sector level. This is an artifact of aggregation. Estimations performed on aggregate data constrain sector elasticities to homogeneity, which creates a heterogeneity bias. The paper shows such a bias exists in two prominent approaches used to estimate elasticities, which has meaningful consequences for the calibration of the Trade Elasticity in one-sector, aggregative models. With elasticities calibrated to aggregate data, macroeconomic models can have predictions at odds with the implications of their multi-sector counterparts. They do not when elasticities are calibrated using a weighted average of sector elasticities.
-
Elasticity Optimism
American Economic Journal: Macroeconomics, 2015Co-Authors: Jean Imbs, Isabelle MejeanAbstract:On average, estimates of Trade elasticities are smaller in aggregate data than at sector level. This is an artifact of aggregation. Estimations performed on aggregate data constrain sector elasticities to homogeneity, which creates a heterogeneity bias. The paper shows such a bias exists in two prominent approaches used to estimate elasticities, which has meaningful consequences for the calibration of the Trade Elasticity in one-sector, aggregative models. With elasticities calibrated to aggregate data, macroeconomic models can have predictions at odds with the implications of their multi-sector counterparts. They do not when elasticities are calibrated using a weighted average of sector elasticities. (JEL C51, F13, F14, F41, O19)
Maria Bas - One of the best experts on this subject based on the ideXlab platform.
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From Micro to Macro: Demand, Supply, and Heterogeneity in the Trade Elasticity
2020Co-Authors: Maria Bas, Thierry Mayer, Mathias ThoenigAbstract:Models of heterogeneous firms with selection into export market participation generically exhibit aggregate Trade elasticities that vary across country-pairs. Only when heterogeneity is assumed Pareto-distributed do all elasticities collapse into an unique Elasticity, estimable with a gravity equation. This paper provides a theory-based method for quantifying country-pair specific elasticities when moving away from Pareto, i.e. when gravity does not hold. Combining two firm-level customs datasets for which we observe French and Chinese individual sales on the same destination market over the 2000-2006 period, we are able to estimate all the components of the dyadic Elasticity: i) the demand-side parameter that governs the intensive margin and ii) the supply side parameters that drive the extensive margin. These components are then assembled under theoretical guidance to calculate bilateral aggregate elasticities over the whole set of destinations, and their decomposition into different margins. Our predictions fit well with econometric estimates, supporting our view that micro-data is a key element in the quantification of non-constant macro Trade elasticities.
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From micro to macro: Demand, supply, and heterogeneity in the Trade Elasticity
Journal of International Economics, 2017Co-Authors: Maria Bas, Thierry Mayer, Mathias ThoenigAbstract:Models of heterogeneous firms with selection into export market participation generically exhibit aggregate Trade elasticities that vary across country-pairs. Only when heterogeneity is assumed Pareto-distributed do all elasticities collapse into a unique Elasticity, estimable with a gravity equation. This paper provides a theory-consistent methodology for quantifying country-pair specific aggregate elasticities when moving away from Pareto, i.e. when gravity does not hold. Combining two firm-level customs datasets for which we observe French and Chinese individual sales on the same destination market over the 2000–2006 period, we are able to estimate all the components of the bilateral aggregate Elasticity: i) the demand-side parameter that governs the intensive margin and ii) the supply side parameters that drive the extensive margin. These components are then used to calculate theoretical predictions of bilateral aggregate elasticities over the whole set of destinations, and how those elasticities decompose into different margins. Our predictions fit well with econometric estimates, supporting our view that micro-data is a key element in the quantification of aggregate Trade elasticities.
-
From micro to macro: Demand, supply, and heterogeneity in the Trade Elasticity ☆
Journal of International Economics, 2017Co-Authors: Maria Bas, Thierry Mayer, Mathias ThoenigAbstract:Models of heterogeneous firms with selection into export market participation generically exhibit aggregate Trade elasticities that vary across country-pairs. Only when heterogeneity is assumed Pareto-distributed do all elasticities collapse into an unique Elasticity, estimable with a gravity equation. This paper provides a theory-based method for quantifying country-pair specific elasticities when moving away from Pareto, i.e. when gravity does not hold. Combining two firm-level customs datasets for which we observe French and Chinese individual sales on the same destination market over the 2000-2006 period, we are able to estimate all the components of the dyadic Elasticity: i) the demand-side parameter that governs the intensive margin and ii) the supply side parameters that drive the extensive margin. These components are then assembled under theoretical guidance to calculate bilateral aggregate elasticities over the whole set of destinations, and their decomposition into different margins. Our predictions fit well with econometric estimates, supporting our view that micro-data is a key element in the quantification of non-constant macro Trade elasticities.
-
From micro to macro: Demand and supply-side determinants of the Trade Elasticity
2014Co-Authors: Maria Bas, Thierry Mayer, Mathias ThoenigAbstract:This paper combines two rm-level customs datasets for French and Chinese exporters to estimate the Trade Elasticity of exports with respect to taris at the rm-level. This Elasticity reveals the consumer’s response to a change in Trade cost: a demand side parameter. We then show that, when dropping the assumption of Pareto-distributed heterogeneity, this parameter is important to explain the aggregate reaction of bilateral exports to Trade cost shocks. Furthermore, in this No-Pareto case, the Trade Elasticity is not constant, and varies across country pairs. Using our estimated demand-side parameter and a key supply-side parameter measuring the degree of dispersion of rms’ productivity, we construct the predicted bilateral elasticities under the assumption of log-normally distributed productivity. The prediction on the aggregate elasticities, and its decomposition into dierent margins ts well with our aggregate estimates using French and Chinese data, suggesting that both demand and supplyside determinants matter in the reaction of Trade patterns to Trade costs variations, and that micro-data is a key element in the estimation of the macro-level Elasticity.
