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The transmission of import prices to domestic prices: an application to Indonesia

Warr, Peter

Description

The manner in which the landed price of imports affects domestic prices is central to trade policy analysis. This study clarifies the relationship between two methods of modelling this relationship. These are the pass-through elasticity and the 'Armington' elasticity of substitution in demand between imported and domestically produced goods. The latter treatment is commonly used within applied general equilibrium models. The properties of the models are sensitive to the assumed values of these...[Show more]

CollectionsANU Research Publications
Date published: 2008
Type: Journal article
URI: http://hdl.handle.net/1885/35838
Source: Applied Economics Letters
DOI: 10.1080/13504850500425410

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