Trade Elasticities, Heterogeneity, and Optimal Tariffs

  • Anson Soderbery
  • Published 2016


This paper develops a structural estimator for heterogenous supply and demand elasticities in the absence of instrumental variables. Using only readily available bilateral trade data we show how to leverage variation in prices and quantities across multiple markets in order to consistently estimate heterogeneous supply and demand elasticities. Our… (More)


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