On Price Elasticities in Foreign Trade

The origin of this paper was the need to provide import and export functions for the IUI-model of the Swedish economy used in the 1979 forecasting exercise, later on extended to support the analysis in the KRAN-project. This paper summarizes the results of the estimates of price elasticity’s in foreign trade in that exercise. It also surveys results for Sweden obtained by others and briefly compares results for other countries.