The Supply and Demand for Exports: A Simultaneous Approach

Abstract

In the relatively few cases where a supply function for exports has actually been speci fied,2 it has usually not been possible to obtain an estimate of the supply price elasticity either because the relevant structural parameters could not be recaptured from the reduced-form estimating equation, or because the structural supply equation itself did not posit a direct relationship between the quantity of exports supplied and export prices.3 For example, the recent study by Amano (1974) on the export behavior of ten industrial countries contains explicit export demand and export supply functions but the over-identified nature of that model prevents one from obtaining estimates of either the demand or the supply-price elastici ties