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

The article presents authors' reply on the change in the U.S. import demand function between 1950 and 1960. Economists Peter Hooper's main criticism of authors' work centers about the collinearity between trend and income variables. Hooper feels that the trend variable has picked-up much of the inco...

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Publicado en:Review of Economics & Statistics Vol. 59; no. 2; pp. 252 - 253
Autores principales: Joy, James, Stolen, J. D.
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: REPLY.
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          Joy, James
          Stolen, J. D.
      su:
        Imports
        Economic demand
        Income & employment theory
        Economic trends
        Elasticity (Economics)
        Retail franchises
        Economics
        A priori
        United States
      sug:
        subj:
          United States
          Imports
          Economic demand
          Income & employment theory
          Economic trends
          Elasticity (Economics)
          Retail franchises
          Economics
          A priori
      ab: The article presents authors' reply on the change in the U.S. import demand function between 1950 and 1960. Economists Peter Hooper's main criticism of authors' work centers about the collinearity between trend and income variables. Hooper feels that the trend variable has picked-up much of the income effect-leading to less instability in the import demand function than appear to indicate. There are, certainly, numerous factors such as taste changes, increasing awareness of foreign goods, the development of franchises for foreign goods, etc., that seem important, but that are not readily included in the equations except via a trend variable. Hooper also offers some more specific suggestions, such as moving income to the left-hand side of the equation and adding specific variables, such as foreign capacity utilization, for which the trend that had acted as a proxy. Preliminary work did test the feasibility of placing income on the left-hand side of the equation and estimating its elasticity a priori, but the results were not satisfactory. Foreign capacity utilization seems intriguing, although it was found that domestic capacity utilization to be nowhere significant.
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    language: English
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