Elasticity of substitution and anti-dumping decisions |
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Authors: | Jørgen Drud Hansen Philipp Meinen Jørgen Ulff-Møller Nielsen |
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Institution: | 1. University of Southern Denmark, Odense, Denmark 2. Deutsche Bundesbank, Wilhelm-Epstein-Stra?e 14, 60431, Frankfurt am Main, Germany 3. Aarhus University, Aarhus, Denmark
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Abstract: | Motivated by a monopolistic competition model with market segmentation and international price discrimination, this paper analyzes whether there is an inverse relation between the elasticity of substitution and final ad valorem anti-dumping duties across products. We test this for 19 countries using data on anti-dumping from the Global Antidumping Database and US data at the 6-digit HS product level for the elasticity of substitution from Broda and Weinstein (Q J Econ 121(2):541–585, 2006). The results in our empirical investigation support a negative relation between the elasticity of substitution and the final ad valorem anti-dumping duties. |
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