for trade such that given standard assumptions about behavior under uncertainty, the equilibrium allocation would …

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 …

Recent geography and trade empirical studies based on monopolistic competition [Hanson, 1998 ; Head and Ries, 1999 … ; Hummels, 1999], suggest high levels of trade price elasticities (between 3 and11). However, direct estimations of price …-elasticities in trade equations, using price indexes at aggregate or industry levels, lead to much lower values than those predicted …

his empirical study consists of an econometric test of the complementary effect of trade and education on long run … estimator of trade openness. Regressions are run on a long term panel data base (100 years, 10 OECD countries) reconciling the …