Estimating elasticities for U.S. trade in services
By: Jaime Marquez.
Series: International finance discussion papers ;; no. 836; International finance discussion papers (Online) ;; no. 836.
Publisher: Federal Reserve Board
Published: 2005
Place of publication: Washington, D.C
Language: eng
Format: Electronic resource
Other titles: Estimating elasticities for US trade in services
Description: "Explanations of the persistent deficit in U.S. net exports of goods rest on macroeconomic developments and an asymmetry in elasticities: the income elasticity for imports being larger than the income elasticity for exports.  Such macroeconomic developments are not applicable to the equally persistent surplus in U.S.  net exports of services unless the income elasticities for services exhibit the reversed asymmetry.  There have been surprisingly few attempts to demonstrate the existence of this reversed asymmetry, a task that I undertake here.  Specifically, I estimate income and price elasticities for U.S. trade in services and evaluate the importance of simultaneity and aggregation biases.  The analysis reveals two findings.  First, the income elasticity for U.S. exports of services is significantly greater than the income elasticity for U.S. imports of services.  Second, disaggregation is the most important aspect of econometric design in this area"--Federal Reserve Board web site.
Notes: Also available in print.
Includes bibliographical references.
Title from PDF file as viewed on 9/27/2005.
System requirements: Adobe Acrobat Reader.
Mode of access: World Wide Web.