The authors consider a model with two final-goods, one intermediate-good, and two primary factors. One final-good and the intermediate-good are produced using primary factors, labor and capital. The other final-good is produced using labor and the intermediate-input. Producers of the second...

Agricultural economists and policy makers in the United States believe that the magnitude of the export demand elasticity is one of the most important parameters used in farm policy decisions. However, past empirical estimates show wide variation in the size of the U.S. export demand elasticity....