Erkel-Rousse, Hélène; Mirza, Daniel - In: Canadian Journal of Economics 35 (2002) 2, pp. 282-306
Recent economic geography and trade empirical studies based on monopolistic competition suggest high levels of trade price elasticities (between 3 and 11). However, price elasticity estimations in trade equations using unit values as price proxies usually lead to lower values of around unity. We...