Search Results
Showing results 1 to 2 of approximately 2.
(refine search)
Conference Paper
Trade elasticities
We estimate the aggregate export and import price elasticities implied by a Constant Elasticity of Substitution (CES) demand system, for more than 30 countries at various stages of development. Trade elasticities are given by weighted averages of sector-specific elasticities of substitution, that we estimate structurally. Both weights and substitution elasticities can be chosen to compute the response of trade to specific shocks to relative prices, bilateral or global. We document considerable, significant cross-country heterogeneity in multi-lateral trade elasticities, which is virtually ...
Report
Foreign Shocks as Granular Fluctuations
This paper uses a data set covering the universe of French firm-level sales, imports, and exports over the period 1993-2007 and a quantitative multi-country model to study the international transmission of business cycle shocks at both the micro and the macro levels. The largest firms are both important enough to generate aggregate fluctuations (Gabaix 2011), and most likely to be internationally connected. This implies that foreign shocks are transmitted to the domestic economy primarily through the largest firms. We first document a novel stylized fact: larger French firms are significantly ...