Distribution Capital and the Short- and Long-Run Import Demand Elasticity
---- Acknowledgements ----
This paper was begun while Davis was a visiting researcher at the Bank of Estonia and while Crucini was a visiting Senior Fellow at the Globalization and Monetary Policy Institute, Federal Reserve Bank of Dallas. We would like to thank participants at the 2011 Midwest Macro Meetings and the 2012 meetings of the System Committee for International Economic Analysis at the Federal Reserve Bank of San Francisco, the 2013 North American Meetings of the Econometric Society, the 2013 Shanghai Macro Workshop, and the 2013 meeting of the Society for Economic Dynamics. In addition we would like to thank George Alessandria, Aurelijus Dabušinskas, Mick Devereux, Jonathan Heathcote, Finn Kydland, Sylvain Leduc, Andrea Raffo, Jian Wang, Lenno Uusküla and Mark Wynne for many helpful comments and suggestions. The views in this paper are those of the authors and do not necessarily reflect the views of the Federal Reserve Bank of Dallas, the Federal Reserve System, or the National Bureau of Economic Research. Mario Crucini acknowledges the generous financial support of the National Science Foundation (SES #1030164).