TY  - JOUR
AU  - Diewert,W.E.
TI  - Export Supply and Import Demand Functions:  A Production Theory Approach
JF  - National Bureau of Economic Research Working Paper Series
VL  - No. 2011
PY  - 1986
Y2  - August 1986
UR  - http://www.nber.org/papers/w2011
L1  - http://www.nber.org/papers/w2011.pdf
N1  - Author contact info:
W. Erwin Diewert
Department of Economics
University of British Columbia
#997-1873 East Mall
Vancouver, BC  V6T 1Z1
CANADA
Tel: 604/822-2544
Fax: 604/822-5915
E-Mail: diewert@econ.ubc.ca
AB  - In this paper we theoretically and empirically model import demand and export supply behavior of firms for the U.S. economy from 1967-1982. A producer theoretic approach based on duality theory is used to derive econometric systems of producer supply and demand functions that are consistent with profit maximizing behavior. This system is then empirically implemented and the resulting estimates used to construct a full set of supply and demand elasticities characterizing import demand and export supply functions as well as domestic output supply and labor demand. These elasticities are in turn used to derive devaluation elasticities and some estimates of the equilibrium real exchange rate that would cause the U.S. trade surplus to reach zero.
ER  -