Review of World Economics

, Volume 129, Issue 1, pp 55–77 | Cite as

Modeling a north American free trade area: Estimation of flexible functional forms

  • Clinton R. Shiells
  • David W. Roland-Hoist
  • Kenneth A. Reinert


Modeling a North American Free Trade Area: Estimation of Flexible Functional Forms, - This paper provides estimates of the almost ideal demand system as applied to U.S. imports from Canada, Mexico, the rest of the world, and competing domestic output. Quarterly data over 1980-88 and for 19 mining and manufacturing sectors are used. Implications of adding up, homogeneity, symmetry, and negativity are considered. The econometric results should guide applied general equilibrium modeling of a North American Free Trade Area, especially with regard to potential terms-of-trade effects.


Income Elasticity Demand System Expenditure Function Global Regularity Budget Share 
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Zur Modellierung einer Nordamerikanischen Freihandelszone. Schätzung von flexiblen Funktionsformen. - Dieser Aufsatz liefert Schätzungen für das Konzept des ‘Fast idealen Nachfragesystems” (almost ideal demand system), das angewandt wird auf U.S.-Importe aus Kanada, Mexiko, dem Rest der Welt und auf die konkurrierende heimische Produktion. Benutzt werden Vierteljahresdaten aus den Jahren 1980 bis 1988 für neunzehn Bergbau- und Industriesektoren. Untersucht wird, ob die Adding-up-, Homogenitäts-, Symmetrie- und Negativitätsbedingungen erfüllt sind. Die ökonometrischen Ergebnisse sollten bedacht werden bei der Erarbeitung eines angewandten allgemeinen Gleichgewichtsmodells für eine Nordamerikanische Freihandelszone, insbesondere im Hinblick auf mögliche Folgen für die Terms of Trade.


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Copyright information

© Institut fur Weltwirtschaft an der Universitat Kiel 1993

Authors and Affiliations

  • Clinton R. Shiells
  • David W. Roland-Hoist
  • Kenneth A. Reinert

There are no affiliations available

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