NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Giovanni Callegari

European Central Bank
Kaiserstrasse 29
60311 Frankfurt am Main
Germany

E-Mail: Giovanni.Callegari@ecb.int

NBER Working Papers and Publications

December 2011Estimating Trade Elasticities: Demand Composition and the Trade Collapse of 2008-09
with Matthieu Bussière, Fabio Ghironi, Giulia Sestieri, Norihiko Yamano: w17712
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.

Published: Matthieu Bussière & Giovanni Callegari & Fabio Ghironi & Giulia Sestieri & Norihiko Yamano, 2013. "Estimating Trade Elasticities: Demand Composition and the Trade Collapse of 2008-2009," American Economic Journal: Macroeconomics, American Economic Association, vol. 5(3), pages 118-51, July. citation courtesy of

 
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