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New products with a symmetric AIDS expenditure function

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  • Feenstra, Robert C.

Abstract

We study a symmetric AIDS expenditure function that allows for variation in the range of goods. Solving for the reservation prices for goods not available, a convenient form for the expenditure function is obtained. This functional form should prove useful in monopolistic competition models were the range of products changes due to entry and exit.

Suggested Citation

  • Feenstra, Robert C., 2010. "New products with a symmetric AIDS expenditure function," Economics Letters, Elsevier, vol. 106(2), pages 108-111, February.
    • Handle: RePEc:eee:ecolet:v:106:y:2010:i:2:p:108-111
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    Cited by:

    1. W. Erwin Diewert & Robert C. Feenstra, 2021. "Estimating the Benefits of New Products," NBER Chapters, in: Big Data for Twenty-First-Century Economic Statistics, pages 437-473, National Bureau of Economic Research, Inc.
    2. Hillrichs, Dorothee & Vannoorenberghe, Gonzague, 2022. "Trade costs, home bias and the unequal gains from trade," Journal of International Economics, Elsevier, vol. 139(C).
    3. Andrea Saayman & Isabel Cortés-Jiménez, 2013. "Modelling Intercontinental Tourism Consumption in South Africa: A Systems-of-Equations Approach," South African Journal of Economics, Economic Society of South Africa, vol. 81(4), pages 538-560, December.
    4. Robert Feenstra & Chang Hong, 2022. "China’s import demand for agricultural products: The impact of the Phase One trade agreement," Review of International Economics, Wiley Blackwell, vol. 30(1), pages 345-368, February.
    5. Pablo D. Fajgelbaum & Amit K. Khandelwal, 2016. "Measuring the Unequal Gains from Trade," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 131(3), pages 1113-1180.
    6. Jose de Sousa & Eve Sihra & Thierry Mayer, 2019. "Market Integration and Convergence in Consumption Patterns," 2019 Meeting Papers 1178, Society for Economic Dynamics.
    7. Lota D. Tamini & Zakaria Sorgho, 2018. "Trade in Environmental Goods: Evidences from an Analysis Using Elasticities of Trade Costs," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 70(1), pages 53-75, May.
    8. James E. Anderson & Penglong Zhang, 2020. "Latent Exports: Almost Ideal Gravity and Zeros," Boston College Working Papers in Economics 1020, Boston College Department of Economics.
    9. Lota Dabio Tamini & Sorgho Zakaria, 2016. "Trade in environmental goods: how important are trade costs elasticities?," Cahiers de recherche CREATE 2016-3, CREATE.

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