Theory and Practice of International Trade Linkage Models

1. Front Matter

   Pages i-xi

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2. The Linkage System

   • Alexander Italianer

   Pages 1-49

3. Import Allocation Models

   • Alexander Italianer

   Pages 50-84

4. On the Use of Elasticities of Substitution

   • Alexander Italianer

   Pages 85-123

5. Maximum Likelihood Estimation of Nonlinear Models with Linear Constraints on the Functional Form

   • Alexander Italianer

   Pages 124-158

6. A Model with Pairwise Differing Elasticities of Substitution

   • Alexander Italianer

   Pages 159-216

7. Econometric Specification

   • Alexander Italianer

   Pages 217-239

8. The Data

   • Alexander Italianer

   Pages 240-260

9. Estimation

   • Alexander Italianer

   Pages 261-308

10. Hypothesis Testing

    • Alexander Italianer

    Pages 309-355

11. Conclusion

    • Alexander Italianer

    Pages 356-364

12. Back Matter

    Pages 365-395

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This book was mainly written while I stayed at the Catholic University of Louvain. Professor Anton P. Barten was the one who did not only give me a warm welcome in Louvain, but also supported my research with most valuable comments and constructive criticisms. In addition I benefitted from dis­ cussions with Erik Schokkaert, Denis de Crombrugghe and Jo Baras on various subjects, such as the small-sample correction of Chapter 9. The arduous task of transferring my neat handwriting into a readable typescript was excellently taken care of by Brs. E. Crabbe and notably Brs. F. Duij sens, even after working hours. Mrs. A. Molders prevented me of making serious abuse of the English language. My admiration for Carien, finally, is an exponential function of the patience and enthusiasm with which she sup­ ported my research. Chapter I is a general introduction to the subject of linkage models, and it contains few mathematical elaborations. Chapters 2 to 4 use more, but elementary, mathematics, and treat several aspects related to the deriva­ tion, interpretation and estimation of linkage models. Chapter 2 deals vii tll the theory of import allocation models, Chapter J treats the problem of defining and interpreting elasticities of substitution, while Chapter 4 is concerned with the econometric problems related to the estimation of mul­ tivariate models with linear restrictions, such as import allocation models.

• international trade

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