Whither Armington Trade Models?

• DOI: 10.2307/1242349
• Publication Date: 2006-07-05T09:10:38Z
• Authors: Julian M. Alston; Colin A. Carter; Richard Green; Daniel Pick
• Keywords: Linkage (software); Applied general equilibrium

Abstract The Armington trade model distinguishes commodities by country of origin, and import demand is determined in a separable two‐step procedure. This framework has been applied to numerous international agricultural markets with the objective modeling demand. In addition, computable general equilibrium (CGE) models commonly employ formulation linkage equations. purpose this paper test assumptions homotheticity separability data from cotton wheat markets. Both parametric nonparametric tests were performed, empirical results reject assumptions. important implications for CGE modeling.