A generalized armington trade model: Respecification

Seung Ryong Yang, Won W. Koo

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

Even if the original version of the Armington model is simple and plausible in estimation, the single CES and homotheticity assumptions are too restrictive for practical application and give biased price elasticities. This paper develops a generalized Armington model, which relaxes the single CES and homotheticity restrictions, and includes the Armington model as a special case. The Armington and generalized Armington trade models are applied to the Japanese meat import demand to demonstrate their performance. The empirical results rejected the two assumptions imposed on the Armington model. The generalized Armington model provides an alternative to the restrictive but indispensable Armington model.

Original languageEnglish
Pages (from-to)347-356
Number of pages10
JournalAgricultural Economics
Volume9
Issue number4
Publication statusPublished - 1993 Dec 1
Externally publishedYes

Fingerprint

demand elasticities
meat
imports
elasticity
import
Homotheticity
price
demand
Meat
Price elasticity
Empirical results
Import demand

ASJC Scopus subject areas

  • Agronomy and Crop Science
  • Forestry
  • Economics and Econometrics

Cite this

A generalized armington trade model : Respecification. / Yang, Seung Ryong; Koo, Won W.

In: Agricultural Economics, Vol. 9, No. 4, 01.12.1993, p. 347-356.

Research output: Contribution to journalArticle

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