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The elasticity of substitution between home and foreign goods is one of the most important parameters in international … trade flows following a change in relative prices, assigns a high value to this parameter. This paper constructs a model … change in relative prices, and home and foreign goods appear as poor substitutes in the short run. In the long run this …
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reallocated, and quantities can shift following a change in relative prices. Thus the observed substitutability between home and …
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The elasticity of substitution between home and foreign goods is one of the most important parameters in international … trade flows following a change in relative prices, assigns a high value to this parameter. This paper constructs a model … change in relative prices, and home and foreign goods appear as poor substitutes in the short run. In the long run this …
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