Triplets, Quads and Quints: Estimating Disaggregate Trade Elasticities with Different Odds Ratios
- Bohlmann, Adrienne (FernUniversität in Hagen)
- ZBW - Leibniz Informationszentrum Wirtschaft
- Trade Policy; International Trade Organizations
- Country and Industry Studies of Trade
- Open Economy Macroeconomics
AbstractTrade elasticities are a crucial variable for research on international trade. Caliendo and Parro (2015) provide a novel method to estimate trade elasticities which is based on odds ratio triplets calculated from structural gravity equations. We find that these odds ratios can be set up not only as triplets, but also e.g. as quadruplets (quads) and quintuples (quints). We estimate trade elasticities from triplets, quads and quints for the two digit level of ISIC Rev.3. The corresponding estimates show certain differences, but the results are generally robust. Because the different odds ratios are all theoretically validated, we suggest using them for checking robustness. Benefits could also arise because larger odds ratios might be able to provide more reliable estimates.
Update Metadata: 2021-02-19 | Issue Number: 1 | Registration Date: 2021-02-19