Understanding the evolution of trade deficits: trade elasticities of industrialized countries
Abstract: In this article, the authors present updated trade elasticities?measures of how much imports and exports change in response to income and price changes?for the U.S. and six other industrialized countries, collectively known as the Group of Seven. They find that the imports and exports of these countries are slightly more responsive to changes in a country?s total income over a period that ends in 2006, compared with a period that ends in 1994.
File(s): File format is application/pdf http://www.chicagofed.org/digital_assets/publications/economic_perspectives/2007/ep_4qtr2007_part1_crane_etal.pdf
Provider: Federal Reserve Bank of Chicago
Part of Series: Economic Perspectives
Publication Date: 2007
Issue: Q IV