The cross‐Euler equation approach to intertemporal substitution in import demand
提出交叉欧拉方程概念，解决进口需求跨期替代弹性（IES）识别与估计的实证难题，利用美国数据检验进口消费是否受干扰因素影响。
Abstract This paper addresses the empirical dilemma in identifying and estimating the parameters governing the intertemporal elasticity of substitution (IES) for import demand. We propose a new concept, the cross‐Euler equation, for overcoming this empirical dilemma. IES parameters are estimated by exploiting the cointegrating restriction implied by the cross‐Euler equation. Further, by comparing the IES estimates from the cross‐Euler equation to those from the standard Euler equation, we test the hypothesis whether import demand is affected by nuisance factors. Using the US data, we found imported goods consumption to be robust against nuisance factors, but not for domestic goods. Copyright © 2005 John Wiley & Sons, Ltd.