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American Economic Review: Vol. 101 No. 3 (May 2011)

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The "Collapse in Quality" Hypothesis

Article Citation

Levchenko, Andrei A., Logan T. Lewis, and Linda L. Tesar. 2011. "The "Collapse in Quality" Hypothesis." American Economic Review, 101(3): 293-97.

DOI: 10.1257/aer.101.3.293

Abstract

This paper evaluates the hypothesis that during the 2008-2009 collapse in international trade, imports of higher quality goods experienced larger reductions compared to low-quality imports, using data on US imports disaggregated by HS-10 product category and source country. We find little, if any, robust econometric evidence in support of this hypothesis.

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Online Appendix (195.35 KB)

Authors

Levchenko, Andrei A. (U MI)
Lewis, Logan T. (U MI)
Tesar, Linda L. (U MI)

JEL Classifications

E32: Business Fluctuations; Cycles
F14: Country and Industry Studies of Trade
F44: International Business Cycles
G01: Financial Crises


American Economic Review


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