Measuring the Share of Imports in Final Consumption
AEA Papers and Proceedings
vol. 113,
May 2023
(pp. 81-86)
Abstract
We use Belgian data on domestic firm-to-firm transactions and ask how the measurement of the share of imports in final consumption is affected when one uses data recorded at higher levels of aggregation. We find that aggregating detailed firm-to-firm transaction data to the firm level and imposing homogeneity assumptions in the composition of firms' input and output do not substantially affect the measurement of the share of imports in final consumption. However, using the national input-output tables alone may understate the share of imports in final consumption and, thereby, the gains from trade.Citation
Dhyne, Emmanuel, Ayumu Ken Kikkawa, Magne Mogstad, and Felix Tintelnot. 2023. "Measuring the Share of Imports in Final Consumption." AEA Papers and Proceedings, 113: 81-86. DOI: 10.1257/pandp.20231074Additional Materials
JEL Classification
- D22 Firm Behavior: Empirical Analysis
- E16 General Aggregative Models: Social Accounting Matrix
- E21 Macroeconomics: Consumption; Saving; Wealth
- F14 Empirical Studies of Trade
- L14 Transactional Relationships; Contracts and Reputation; Networks