TY  - JOUR
AU  - Bussière,Matthieu
AU  - Callegari,Giovanni
AU  - Ghironi,Fabio
AU  - Sestieri,Giulia
AU  - Yamano,Norihiko
TI  - Estimating Trade Elasticities: Demand Composition and the Trade Collapse of 2008-09
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 17712
PY  - 2011
Y2  - December 2011
UR  - http://www.nber.org/papers/w17712
L1  - http://www.nber.org/papers/w17712.pdf
N1  - Author contact info:
Matthieu Bussiere
Banque de France
31 rue Croix des Petits Champs
75001 Paris
France
E-Mail: Matthieu.Bussiere@banque-france.fr

Giovanni Callegari
European Central Bank
Kaiserstrasse 29
60311 Frankfurt am Main
Germany
E-Mail: Giovanni.Callegari@ecb.int

Fabio Ghironi
Boston College
Department of Economics
140 Commonwealth Avenue
Chestnut Hill, MA 02467-3859
Tel: 617/552-3686
Fax: 617/552-2308
E-Mail: fabio.ghironi@bc.edu

Giulia Sestieri
Banque de France
31 rue Croix des Petits Champs
75001 Paris
France
E-Mail: Giulia.Sestieri@banque-france.fr

Norihiko Yamano
OECD
2 rue Andre Pascal
75775 Paris Cedex 16, Paris
France
E-Mail: Norihiko.Yamano@oecd.org
AB  - This paper introduces a new methodology for the estimation of demand trade elasticities based on an import intensity-adjusted measure of aggregate demand, with the foundation of a stylized theoretical model. We compute the import intensity of demand components by using the OECD Input-Output tables. We argue that the composition of demand plays a key role in trade dynamics because of the large movements in the most import-intensive categories of expenditure (especially investment, but also exports). We provide evidence in favor of these mechanisms for a panel of 18 OECD countries, paying particular attention to the 2008-09 Great Trade Collapse.
ER  -