Import Demand Elasticities and Trade Distortions

@article{Kee2004ImportDE,
  title={Import Demand Elasticities and Trade Distortions},
  author={H. Kee and A. Nicita and M. Olarreaga},
  journal={The Review of Economics and Statistics},
  year={2004},
  volume={90},
  pages={666-682}
}
To study the effects of tariffs on gross domestic product (GDP), one needs import demand elasticities at the tariff line level that are consistent with GDP maximization. These do not exist. The authors modify Kohli's (1991) GDP function approach to estimate demand elasticities for 4,625 imported goods in 117 countries. Following Anderson and Neary (1992, 1994) and Feenstra (1995), they use these estimates to construct theoretically sound trade restrictiveness indices, and GDP losses associated… Expand
Methods to Aggregate Import Tariffs and their Impacts on Modeling Results
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