JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide range of content in a trusted digital archive. We use information technology and tools to increase productivity and facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.. The MIT Press is collaborating with JSTOR to digitize, preserve and extend access to The Review of Economics and Statistics.Abstract-Disaggregated import-demand elasticity estimates based on import unit-valuie indexes are used in virtually all trade policy simulation models. However, unit-value indexes have been criticized especially by Kravis and Lipsey (1974). To examine the effect of using unit-value indexes on estimates of disaggregated import-demand elasticities, this paper compares regression results using unit-value indexes with results using U.S. Bureau of Labor Statistics import-price indexes for several detailed trade categories based on quarterly data for 1978-88. Results show that using unit-value indexes does not greatly affect estimated import-demand elasticities.
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