TY - JOUR
T1 - Econometric estimation of Armington import elasticities for a regional CGE model of the Illinois economy
AU - Turner, Karen
AU - Ha, Soo Jung
AU - Hewings, Geoffrey J.D.
AU - McGregor, Peter
AU - Swales, Kim
N1 - The econometric work reported here was initially carried out as part of Soo Jung Ha’s doctoral research at the University of Illinois (under the supervision of Geoffrey Hewings, and in collaboration with Karen Turner on CGE model development). This paper has been further developed with the CGE modeling application under an ESRC Climate Change Leadership Fellowship (Grant reference RES-066-27-0029). Support from NSF grant 0818578 is also acknowledged. We are grateful to participants at the 48th Annual Meeting of the Western Regional Science Association conference, held in Napa Valley California (February 2009), and the annual conference of the Regional Science Association International: British and Irish Section, held in Glasgow, Scotland (August 2010) for comments on earlier versions of this paper.
PY - 2012/3
Y1 - 2012/3
N2 - One of the main concerns associated with the development and use of regional CGE models is the determination of key parameter values, particularly substitution and other price elasticities. A common problem is the lack of appropriate regional data for econometric estimation. Consequently, it is important to identify key parameters that are likely to be important in determining quantitative results and then to prioritize these for estimation where appropriate data are available. In this paper, the focus is on the estimation of the regional trade (import) substitution parameters, which tend to be important in analysis for regional economies (given their openness to trade). Here, commodity import elasticities for the Illinois economy are estimated and tested in a single region CGE model of the Illinois economy. In our econometric estimation, we apply a model that takes account of market size and distance in estimating the substitutability between commodities produced in Illinois and other US states.
AB - One of the main concerns associated with the development and use of regional CGE models is the determination of key parameter values, particularly substitution and other price elasticities. A common problem is the lack of appropriate regional data for econometric estimation. Consequently, it is important to identify key parameters that are likely to be important in determining quantitative results and then to prioritize these for estimation where appropriate data are available. In this paper, the focus is on the estimation of the regional trade (import) substitution parameters, which tend to be important in analysis for regional economies (given their openness to trade). Here, commodity import elasticities for the Illinois economy are estimated and tested in a single region CGE model of the Illinois economy. In our econometric estimation, we apply a model that takes account of market size and distance in estimating the substitutability between commodities produced in Illinois and other US states.
KW - Armington import elasticities
KW - CGE models
KW - Input-output tables
KW - parameter estimates
KW - regional modeling
UR - http://www.scopus.com/inward/record.url?scp=84859366618&partnerID=8YFLogxK
UR - http://www.scopus.com/inward/citedby.url?scp=84859366618&partnerID=8YFLogxK
U2 - 10.1080/09535314.2011.645800
DO - 10.1080/09535314.2011.645800
M3 - Article
AN - SCOPUS:84859366618
SN - 0953-5314
VL - 24
SP - 1
EP - 19
JO - Economic Systems Research
JF - Economic Systems Research
IS - 1
ER -