Quantitative results from a large class of international trade models depend critically on the elasticity of trade with … respect to trade frictions. We develop a simulated method of moments estimator to estimate this elasticity from disaggregate …-flow data for 123 countries in the year 2004 yields a trade elasticity of roughly four, nearly fifty percent lower than Eaton …

This paper points to the important role which the elasticity of aggregate capital supply with respect to the net rate … (zero capital supply elasticity) the decentralized policy choice is optimal. If the capital supply elasticity is strictly …

elasticity measures are not sufficient statistics and must be adjusted upwards in optimal tax formulas. Finally, we study a …