Crozet, Matthieu; Erkel-Rousse, Hélène - HAL - 2004
Traditional trade models ignoring the dimension of product quality generally lead to excessively low trade price … elasticities. In this paper, we show that higher estimated trade price elasticities, more in conformity with theory, can be … obtained by controlling product quality in trade equations. To do so, we have estimated trade equations including a product …