This paper analyses import penetration with a consumer demand approach that distinguishes domestically and foreign-produced varieties. Consistent aggregation leads to a macro-level import demand equation that faithfully reflects the underlying micro demands for foreign varieties. The approach...

There are significant disparities in the wealth of nations and how incomes are spent. For example, consumers in the poorest countries spend more than half of income on food, whilein the richest countries, this is one-tenth or less. We use the recently published data from theInternational...