Crozet, M.; Erkel-Rousse, H. - Centre de recherche de mathématiques et économie … - 2000
Traditional trade models ignoring the dimension of product quality generally lead to excessively low trade price … elasticities. In this paper, we show that higher estimated trade price elasticities, more in conformity with theory, can be … obtained by controlling product quality in trade equations. To do so, we have estimated trade equations including a product …