Imports Prices Revealed: Groundbreaking Method Transforms Trade Policies
The article presents a new method to measure how changes in prices affect the amount of goods a country imports. Traditional methods may not always work well with specific types of data, like sectoral data. The researchers used a vector autoregression model to estimate price elasticity when a stable long-term relationship isn't found. They applied this method to Korean sectoral imports data and found it to be useful.