Discussion Papers no 243

Modelling the demand for imports and domestic output

The paper models domestic output over imports in Norway’s expenditure on manufactures. Using Johansen’s (1988, 1991) method, we obtain a cointegrating vector between the output-imports ratio, relative prices and a proxy for international specialisation. This vector enters a conditional equilibrium correction model of the output-imports ratio; a model which also includes short-run influences of relative prices and a negative coefficient for domestic capacity utilisation. The utilisation coefficient aside, we do not find significant activity effects on the output-imports ratio. Lastly, the model passes several tests of the Lucas critique.

Om publikasjonen

Tittel

Modelling the demand for imports and domestic output

Ansvarlig

Bjørn E. Naug

Serie og -nummer

Discussion Papers no 243

Utgiver

Statistics Norway, Research Department

Emne

Discussion Papers

Antall sider

30

Målform

Engelsk

Om Discussion Papers

Discussion papers comprise research papers intended for international journals and books. A preprint of a Discussion Paper may be longer and more elaborate than a standard journal article as it may include intermediate calculations, background material etc.

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