Feenstra, Robert; Luck, Philip; Obstfeld, Maurice; … - C.E.P.R. Discussion Papers - 2014
The elasticity of substitution between goods from different countries—the Armington elasticity—is important for many … questions in international economics, but its magnitude is subject to debate: the "macro" elasticity between home and import … goods is often found to be smaller than the "micro" elasticity between foreign sources of imports. We investigate these two …