Abstract
Original language | English |
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Pages (from-to) | 108-129 |
Number of pages | 22 |
Journal | Review of International Economics |
Volume | 12 |
Issue number | 1 |
DOIs | |
Publication status | Published - 1 Feb 2004 |
Externally published | Yes |
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Trade performances, product quality perceptions, and the estimation of trade price-elasticities. / CROZET, Matthieu Daniel; ERKEL-ROUSSE, Hélène.
In: Review of International Economics, Vol. 12, No. 1, 01.02.2004, p. 108-129.Research output: Journal Publications › Journal Article (refereed)
TY - JOUR
T1 - Trade performances, product quality perceptions, and the estimation of trade price-elasticities
AU - CROZET, Matthieu Daniel
AU - ERKEL-ROUSSE, Hélène
PY - 2004/2/1
Y1 - 2004/2/1
N2 - Traditional trade models ignoring the dimension of product quality generally lead to excessively low trade price elasticities. This paper estimates import market share equations including a quality image proxy derived from survey data. The estimation results, based on panel data for the four main EU member states, confirm the part played by product quality perceptions in the estimation of trade price elasticities, at least for highly differentiated products. Introducing the quality image proxy into the models leads to a significant increase in the price elasticities, which thus become superior to unity, in conformity with theoretical elasticities of substitution.
AB - Traditional trade models ignoring the dimension of product quality generally lead to excessively low trade price elasticities. This paper estimates import market share equations including a quality image proxy derived from survey data. The estimation results, based on panel data for the four main EU member states, confirm the part played by product quality perceptions in the estimation of trade price elasticities, at least for highly differentiated products. Introducing the quality image proxy into the models leads to a significant increase in the price elasticities, which thus become superior to unity, in conformity with theoretical elasticities of substitution.
UR - http://commons.ln.edu.hk/sw_master/5986
U2 - 10.1111/j.1467-9396.2004.00434.x
DO - 10.1111/j.1467-9396.2004.00434.x
M3 - Journal Article (refereed)
VL - 12
SP - 108
EP - 129
JO - Review of International Economics
JF - Review of International Economics
SN - 0965-7576
IS - 1
ER -