1. HOW RELIABLE ARE SIMPLE SINGLE EQUATIONS SPECIFICATION OF IMPORT DEMAND?
- Author
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Thursby, Jerry and Thursby, Marie
- Subjects
IMPORTS ,ECONOMIC demand ,ELASTICITY (Economics) ,ECONOMETRIC models ,EQUATIONS - Abstract
Abstract--This paper examines nine models of aggregate import demand for each of five countries (Canada, Germany, Japan, United Kingdom, and United States) in an attempt to determine which of the frequently used single equation models of import demand are appropriate. An appropriate model is defined as one which generates unbiased (or at least consistent) and efficient elasticity estimates. While models without lagged adjustments and Almon lag models perform rather poorly according to these criteria, models including dynamic behavior through lagged values of the dependent variable are frequently accepted. Results are reported regarding functional form, measures of variables, and structural shift. [ABSTRACT FROM AUTHOR]
- Published
- 1984
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