Estimating Price Elasticities of Food Trade Functions: How Relevant is the CES‐based Gravity Approach?
检验了引力模型基于CES偏好的假设是否适用于欧洲奶酪贸易数据，发现这些假设不成立，且对价格弹性估计的偏差方向不确定。
Abstract The main objective of this article is to examine econometric estimates of price elasticities of food trade functions. We investigate the relevance of the prominent gravity approach. This approach is based on the assumptions of symmetric, monotone, homothetic, Constant Elasticity of Substitution (CES) preferences. We test all these assumptions using intra‐European trade in cheese. In general, the assumptions made on preferences by the gravity approach are not supported by our dataset. The bias induced in the estimated price elasticities is ambiguous.