IES researchers have published an article in Journal of International Economics
IES researchers have published an article in Journal of International Economics
The elasticity of substitution between domestic and foreign goods, also called Armington elasticity, is one of the key parameters in international economics. Yet the elasticity estimates have varied widely in the past. A team of researchers from IES - Tomáš Havránek, Zuzana Havránková, Jiří Schwarz and Josef Bajzík collected over 3000 reported estimates of the elasticity, and used several techniques to examine what drives the heterogeneity in those results.
The outcome of their research was published in one of the top-rated and also the most selective journal in the field of international economics - Journal of International Economics.
The article "Estimating the Armington elasticity: The importance of study design and publication bias" is available here. The resume of the problematics of elasticity estimates, highlights from the article above and examples of a practical usage of the work of our colleagues have also recently been published in a column for VOXeu.