European Study Reveals Varying Armington Elasticities Across Sectors and Countries
The article explores how different countries and sectors have varying Armington elasticities, which affect the results of economic models used for policy analysis. By analyzing data from European countries, the researchers found that these elasticities differ significantly across sectors and countries, and can impact the outcomes of economic simulations. This highlights the importance of accurately estimating these elasticities to avoid biased results in policy evaluations.