THE CHANGE IN THE U.S. IMPORT DEMAND FUNCTION FROM THE 1950s TO THE 1960s: A COMMENT.

The article presents comments from the author on the change in the U.S. import demand function between 1950 and 1960. Estimates shown by economists James Joy and J. D. Stolen indicate a shift in the income elasticity of U.S. import demand from about 2.0 in the 1950s to about zero in the 1960s. They...

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Publicado en:Review of Economics & Statistics Vol. 59; no. 2; pp. 250 - 252
Autor principal: Hooper, Peter
Formato: Artículo
Publicado: MIT Press May77
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: THE CHANGE IN THE U.S. IMPORT DEMAND FUNCTION FROM THE 1950s TO THE 1960s: A COMMENT.
      aug:
        au: Hooper, Peter
      su:
        Imports
        Economic demand
        Elasticity (Economics)
        Estimates
        Joy, James
        Income
        Stolen, J. D.
        Economic trends
        Economic forecasting
        Multicollinearity
        United States
      sug:
        subj:
          United States
          Imports
          Economic demand
          Elasticity (Economics)
          Estimates
          Joy, James
          Income
          Stolen, J. D.
          Economic trends
          Economic forecasting
          Multicollinearity
      ab: The article presents comments from the author on the change in the U.S. import demand function between 1950 and 1960. Estimates shown by economists James Joy and J. D. Stolen indicate a shift in the income elasticity of U.S. import demand from about 2.0 in the 1950s to about zero in the 1960s. They gave explanations for this shift is the change in the composition of imports that took place over the two periods; the share of food and crude materials declined and that of finished manufactures increased. However, a shift in import composition toward more consumer luxury items and investment goods and less consumer necessities and material inputs would seem to be consistent with an increase in income elasticity rather than the decrease that they have found. Much of the problem with Joy and Stolen's analysis lies in the use of a time-trend variable in their equations. However, a time trend variable is a less than perfect substitute for the various nonincome, nonprice factors affecting import demand. Special problems arise during periods of strong trend growth in income as noted above in reference to observed multicollinearity.
      pubtype: Academic Journal
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      src: R
    language: English
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