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International trade in a differentiated good: Trade elasticities in the world rice market
Author(s) -
AgcaoiliSombilla Mercedita C.,
Rosegrant Mark W.
Publication year - 1994
Publication title -
agricultural economics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.29
H-Index - 82
eISSN - 1574-0862
pISSN - 0169-5150
DOI - 10.1111/j.1574-0862.1994.tb00307.x
Subject(s) - economics , homogeneous , homogeneity (statistics) , product differentiation , econometrics , world trade , elasticity (physics) , differential (mechanical device) , commodity , international trade , microeconomics , mathematics , statistics , market economy , materials science , combinatorics , cournot competition , composite material , engineering , aerospace engineering
In many previous rice trade models, the commodity has been regarded as a homogeneous product. However, homogeneity is not an appropriate assumption, given the various types of rice that are traded and consumed. Parameters estimated from these models, therefore, do not reflect the real world market for rice and, hence, may mislead decision makers who use the results for policy evaluation purposes. This study uses an Armington approach to model the world rice trade as a differential good market and to derive trade elasticity parameters.