The Elasticity of Trade: Estimates and Evidence

We are grateful to the World Bank for providing us with the price data from the 2003-2005 ICP round. We thank George Alessandria, Alexander Aue, Dave Donaldson, Robert Feenstra, Timothy Kehoe, Matthias Lux, B. Ravikumar, seminar participants at CUHK, Tsinghua, UC San Diego, Syracuse, ETH/KOF, Princeton, Uppsala, Oslo, San Francisco Fed, UC Berkeley, NYU and participants at the CESifo Area Conference on Global Economy 2011, NBER ITI Program Meeting Winter 2010, 2010 International TradeWorkshop at the Philadelphia Fed, Conference on Microeconomic Sources of Real Exchange Rate Behavior at Vanderbilt, Midwest International Trade Meeting Fall 2010, SED 2010, WEAI 2010, Conference on Trade Costs and International Trade Integration: Past, Present and Future in Venice, International Comparisons Conference at Oxford, North American Winter Meeting of the Econometric Society 2010, AEA 2010 for their feedback. Ina Simonovska thanks Princeton University for their hospitality and financial support through the Peter B. Kenen fellowship. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

• July 30, 2013