We offer a duality-based methodology for incorporating multi-sector effects of international trade into open economy macroeconomic models, developing the concepts of the dynamic factor price equalization set and the integrated intertemporal equilibrium. Under this approach, the aggregate...

Elasticities of substitution among U.S. imports from Mexico, Canada, the rest of the world, and competing domestic production are estimated for twenty-two mining and manufacturing sectors, based on quarterly data for 1980-88. These elasticities will provide a benchmark for computable general...

The purpose of the paper is to measure the potential bias in the U.S. import price index due to the appearance of new product varieties, or new foreign suppliers, and determine the effect of this bias on the estimated income elasticity of import demand. Existing import price indexes are based on...

This paper emphasizes the relevance of classical transition dynamics for trade policy, particularly for developing countries. The empirical evidence from cross-country growth regressions points to important transitional growth effects related to trade policy reforms. The paper employs a simple...

Given the substantial rents involved in oil and gas trade and the incentives for noncooperative behavior Russia and Ukraine have chosen to deviate from standard tax considerations, which suggest the use of a destination-based value-added tax (VAT) regime. Oil and gas trade is a major source of...