The "Collapse in Quality" Hypothesis
AbstractThis 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.
CitationLevchenko, 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
- E32 Business Fluctuations; Cycles
- F14 Country and Industry Studies of Trade
- F44 International Business Cycles
- G01 Financial Crises