Elasticity is a term used in economics to ... or services or those for which competitors offer readily available substitute goods and services. The airline industry is elastic because it is ...

The formula in the image below shows ... of one good when the price of another one changes. Cross elasticity of demand can refer to substitute goods or complementary goods. When the price of ...

Trade and industrial policies, while primarily intended to support domestic industries, may unintentionally stimulate technological progress abroad. We document this mechanism in the case of rare ...

The endogenous response to a rise in skill supply counters the traditional substitution effect and dampens its role in reducing wage inequality. The model re-enforces consensus estimates of the ...

Skip to content viewer section. The paper tests the hypothesis of a maturity-independent foreign exchange risk premium or equivalently of a constant elasticity of substitution of international assets ...

Empirical evidence indicates that the elasticity of capital-labor substitution for the aggregate U.S. economy is below unity. In contrast, the existing indeterminacy literature has mostly restricted ...