The Adjustment of Canadian Import Demand to Changes in Income, Prices, and Exchange Rates

The paper provides estimates of the sensitivity of Canadian import demand to changes in income, prices, and exchange rates. The model specification allows for the consideration of long-run elasticities as well as the dynamics of short-run adjustment of imports to changes in these variables. The estimated long-run elasticities obtained are similar to those in previous studies. It is also shown that Canadian imports react quickly to changes in either foreign or domestic prices, but that the reaction to changes in exchange rates is much slower

An Empirical Examination of the Structural Stability of Disaggregated U.S. Import Demand.

We present three related types of evidence on U.S. import demand. First, aggregate import demand is reestimated for comparison with previous research. Second, we provide updated estimates of import demand for five economic classes: crude foods, crude materials, manufactured foods, semi- manufactures, and finished manufactures. Finally, each of these import demand functions is tested for any evidence of structural instability, and in those cases where instability is detected, the demand equations are reestimated along the lines suggested by the stability tests. Copyright 1989 by MIT Press.