Review of export elasticities - NZIER working paper 2011/4

13 October 2011

Assumptions on export elasticities can have a big impact on CGE model results, especially at the industry level. Export elasticities measure the responsiveness of demand for a country’s exports to a change in the world price. The greater the elasticity, the greater the change in export demand following a price shift.  We find that the size of the export elasticities has an important impact on the magnitude of Computable General Equilibrium (CGE) modelling results. The full working paper can be read here.

Each year NZIER devotes some of its resources to undertake and make freely available economic research and thinking aimed at promoting a better understanding of New Zealand’s important economic challenges. The preparation of this paper was funded from those resources.

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