Demir, Banu; Javorcik, Beata K. Smarzynska - 2018
Estimates of the trade elasticity based on actual trade policy changes are scarce, and the few that exist are all over … elasticity. It shows theoretically and empirically that if evasion of border taxes is not taken into account, the trade … elasticity is estimated with a large downward bias, leading to miscalculation of gains from trade. The paper also contributes to …