The Elasticity of Substitution in Demand for Non-Tradable Goods in Latin America: The Case of Argentina

The objective of this paper is to estimate the elasticity of substitution in the demand for non-tradable goods relative to tradable goods in Argentina. This parameter plays a crucial role in the analysis of the macroeconomic equilibrium of a small open economy (Mendoza, Galindo and Izquierdo, 2003). Using two data sets, estimates of approximately 0. 40 and 0. 48, respectively, are found for this elasticity.

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Year of publication:	2004-08
Authors:	Rozada, Martín González ; Neumeyer, Pablo Andrés ; Clemente, Alejandra ; Sasson, Diego Luciano ; Trachter, Nicholas
Institutions:	Inter-American Development Bank

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Extent:	application/pdf
Series:	Research Department Publications.
Type of publication:	Book / Working Paper
Language:	English
Notes:	Number 3179
Source:	RePEc - Research Papers in Economics

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