Cover Page; Title Page; Copyright Page; Contents; I. Introduction; II. The Model; A. Assumptions; B. Model Solution; C. Sensitivity of Elasticities to Parameter Values; III. Calculation of Elasticities; Table 1. Import Demand Elasticities; Table 2. Export Supply Elasticities; IV. Computing Elasticities of a Country's Trade Balance With Respect to a Change in the Exchange Rate; A. The Trade Balance and the Real Exchange Rate; B. Special Cases; Table 3. Summary of How Changes in the Exchange Rate Affect the Trade Balance; Table 4. Trade Balance Elasticities
C. Price Elasticities and the Real Exchange RateV. Some Extensions; A. Imperfect Competition; B. Less than Perfect Labor Mobility; VI. Conclusion; Appendix; References; Footnotes
Summary
Trade elasticities are often needed in applied country work for various purposes and this paper describes a method for estimating import demand and export supply elasticities withoutusing econometrics. The paper reports empirical estimates of these elasticities for a large number of low, middle, and upper income countries. One task for which trade elasticities are needed is in developing exchange rate assessments and this paper shows how the estimated elasticities can be used for this purpose
