IDEAS home Printed from https://ideas.repec.org/p/hal/journl/halshs-03727787.html
   My bibliography  Save this paper

Trade performances and the estimation of price-elasticities: Quality matters

Author

Listed:
  • Matthieu Crozet

    (TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • Hélène Erkel-Rousse

    (DP - Direction de la Prévision - Ministère de l'Economie des Finances et de l'Industrie, TEAM - Théories et Applications en Microéconomie et Macroéconomie - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

Abstract

Traditional trade models ignoring the dimension of product quality generally lead to excessively low trade price elasticities. In this paper, we show that higher estimated trade price elasticities, more in conformity with theory, can be obtained by controlling product quality in trade equations. To do so, we have estimated trade equations including a product quality proxy derived from survey data. Our estimation results, based on panel data for the four main EU member States, confirm the part played by product quality in the estimation of trade price elasticities, at least for traditionally highly differentiated products.

Suggested Citation

  • Matthieu Crozet & Hélène Erkel-Rousse, 2000. "Trade performances and the estimation of price-elasticities: Quality matters," Post-Print halshs-03727787, HAL.
    • Handle: RePEc:hal:journl:halshs-03727787
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03727787
    as

    Download full text from publisher

    File URL: https://shs.hal.science/halshs-03727787/document
    Download Restriction: no
    ---><---

    Other versions of this item:

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. repec:hal:spmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8o1h74in is not listed on IDEAS
    2. Hélène Erkel‐Rousse & Daniel Mirza, 2002. "Import price elasticities: reconsidering the evidence," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 35(2), pages 282-306, May.
    3. Lord, Montague, 2000. "Viet Nam: Small Scale Technical assistance for Capacity Building of Ministry of Finance to Support Tariff, Industry and Subsidy Analysis for the WTO Accession," MPRA Paper 41158, University Library of Munich, Germany.
    4. Keith Head & Thierry Mayer, 2002. "Effet frontière, intégration économique et “Forteresse Europe”," Economie & Prévision, La Documentation Française, vol. 0(1), pages 71-92.
    5. Iheb FRIJA, 2008. "La compétitivité de l'industrie d'habillement tunisienne. Atouts et limites (The tunisian clothing industry competitiveness : assets and limits)," Working Papers 200, Laboratoire de Recherche sur l'Industrie et l'Innovation. ULCO / Research Unit on Industry and Innovation.
    6. Jose Luis Moraga-Gonzalez & Jean-Marie Viaene, 2003. "An Example of Procompetitive Trade Policies," Working Papers 504, Research Seminar in International Economics, University of Michigan.
    7. Lord, Montague, 2004. "Partial-Equilibrium and Industrial-Shift Analysis of the U.S.–Colombia FTA," MPRA Paper 50635, University Library of Munich, Germany.
    8. Moraga-Gonzalez, Jose Luis & Viaene, Jean-Marie, 2005. "Trade policy and quality leadership in transition economies," European Economic Review, Elsevier, vol. 49(2), pages 359-385, February.
    9. Hélène Erkel-Rousse & Françoise Le Gallo, 2002. "Compétitivités prix et qualité dans le commerce international : une analyse empirique des échanges de 12 pays de l’OCDE," Économie et Prévision, Programme National Persée, vol. 152(1), pages 93-113.
    10. repec:spo:wpmain:info:hdl:2441/c8dmi8nm4pdjkuc9g8o1h74in is not listed on IDEAS

    More about this item

    Keywords

    trade performances; trade equations; trade price elasticities; imperfect competition; product differentiation; quality; unit value indices; commerce international; équation de commerce; élasticité-prix; concurrence imparfaite; différentiation des produits; qualité; indices de valeur unitaire;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • F1 - International Economics - - Trade
    • L15 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Information and Product Quality

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:hal:journl:halshs-03727787. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: CCSD (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.