TY - JOUR
T1 - Econometric estimation of Armington import elasticities for a regional CGE model of the Illinois economy
AU - Turner, Karen
AU - Ha, Soo Jung
AU - Hewings, Geoffrey
AU - Mcgregor, Peter
AU - Swales, Kim
PY - 2012
Y1 - 2012
N2 - One of the main concerns associated with the development and use of regional CGE models is the determination of key parameter values, particularly substitution and other price elasticities. A common problem is the lack of appropriate regional data for econometric estimation. Consequently, it is important to identify key parameters that are likely to be important in determining quantitative results and then to prioritize these for estimation where appropriate data are available. In this paper, the focus is on the estimation of the regional trade (import) substitution parameters, which tend to be important in analysis for regional economies (given their openness to trade). Here, commodity import elasticities for the Illinois economy are estimated and tested in a single region CGE model of the Illinois economy. In our econometric estimation, we apply a model that takes account of market size and distance in estimating the substitutability between commodities produced in Illinois and other US states.
AB - One of the main concerns associated with the development and use of regional CGE models is the determination of key parameter values, particularly substitution and other price elasticities. A common problem is the lack of appropriate regional data for econometric estimation. Consequently, it is important to identify key parameters that are likely to be important in determining quantitative results and then to prioritize these for estimation where appropriate data are available. In this paper, the focus is on the estimation of the regional trade (import) substitution parameters, which tend to be important in analysis for regional economies (given their openness to trade). Here, commodity import elasticities for the Illinois economy are estimated and tested in a single region CGE model of the Illinois economy. In our econometric estimation, we apply a model that takes account of market size and distance in estimating the substitutability between commodities produced in Illinois and other US states.
KW - econometric estimation
KW - armington import elasticities
KW - regional cge model
KW - illinois
KW - economy
UR - http://www.scopus.com/inward/record.url?scp=84859366618&partnerID=8YFLogxK
U2 - 10.1080/09535314.2011.645800
DO - 10.1080/09535314.2011.645800
M3 - Article
VL - 24
JO - Economic Systems Research
JF - Economic Systems Research
SN - 0953-5314
IS - 1
ER -