Replication data for: Elasticity Optimism

Isabelle Mejean & Jean Imbs
On average, estimates of trade elasticities are smaller in aggregate data than at sector level. This is an artifact of aggregation. Estimations performed on aggregate data constrain sector elasticities to homogeneity, which creates a heterogeneity bias. The paper shows such a bias exists in two prominent approaches used to estimate elasticities, which has meaningful consequences for the calibration of the trade elasticity in one-sector, aggregative models. With elasticities calibrated to aggregate data, macroeconomic models can...
This data repository is not currently reporting usage information. For information on how your repository can submit usage information, please see our documentation.