EXAMINATION OF TIME STABILITY OF ARMINGTON ELASTICITY IN JAPAN

Abstract

Armington elasticity is one of the most important parameter in the application of SCGE models. So, a number of researches were have been published in order to estimate this parameter. However, they have not considered a change of the time. If some kind of factors such as catastrophe happened, this Armington parameter might have been changed.
In this paper, time series data was used to examine a time stability of Armington parameter. As a result, it was stable in many industries. However, in some industries, such as iron and steel industry, Armington elasticity has changed before and after the disaster.