Exploiting the structural developments suggested by the geography-of-trade literature, we estimate the elasticity of substitution across regional varieties for six crude grades and seven refined products using fixed-effects gravity regressions. We use unique data, compiled by Al-Qahtani (2008),...

Not only access to the factors of production - capital, labour and energy - but also substitutability among these factors has a strong influence on how economies change and evolve. Numerous studies have considered interfactor substitution for industrial countries. But, since only a few have been...

Applied partial and general equilibrium models used to examine trade policy are almost universally sensitive to trade elasticities. Indeed, the Armington elasticity, the degree of substitution between domestic and imported goods, is a key behavioral parameter that drives the quantitative, and...