Abstract

Using annual data for Israel over the period 1960–1989 we estimate an econometric model for the supply and demand for exports. A novel feature is that domestic absorption crowds-out export supply. Exports are imperfect substitutes in world markets for tradeables produced abroad – the price elasticity of demand is about – 1.3 while the price elasticity of supply is about 1.5. The model is simulated to calculate the effects of policy instruments and other exogenous variables on exports and export prices.

Full Text
Published version (Free)

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call