SUPPLY behavior in international trade has been notoriously difficult to capture empirically. Indeed, so few published supply studies exist that Stern, Francis, and Schumacher's (1976) bibliographical survey of price elasticities in international trade devotes over 350 pages to demand estimates but barely 10 pages to supply estimates. In recent years, only Goldstein and Khan (1978) and Dunlevy (1980), using simultaneous-equation estimation techniques, have reported estimates of supply behavior in international trade.' Exogenous shocks to demand and supply for traded goods in general influence both quantity and price. For supply estimates, it is unclear a priori whether the response is more appropriately specified with quantity or price as the dependent variable. However, if supplying firms in an uncertain world pursue pricing strategies based on past market performance (as in Zabel (1981)), the appropriate specification is a supply-price equation. In this case, prices respond to lagged quantities, which implies that the traditional supply-quantity specification (with present and past prices as explanatory variables) cannot capture the dynamic supply behavior. In this study, we explore the hypothesis that previous attempts to estimate supply behavior have generally failed not only because of the well-known problem of simultaneity bias, but also because quantity rather than price was specified as the dependent variable. Section II presents and discusses traditional supply-quantity equations based on quarterly data for aggregate exports and imports for the United Kingdom and the United States from 1947 to 1979. Section III briefly discusses the theoretical rationale of a supply-price specification and presents estimates of supply-price equations based on the same data. Section IV evaluates the empirical evidence to determine whether a supply-quantity or supply-price formulation is more appropriate, and compares estimates of long-run price elasticities of supply based on the two approaches. A final section summarizes the conclusions.

Stephen E. Haynes, Joe A. Stone, Secular and Cyclical Responses of U.S. Trade to Income: An Evaluation of Traditional Models, The Review of Economics and Statistics, Vol. 65, No. 1 (Feb., 1983), pp. 87-95

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Journal Article The Limits of Market-Oriented Regulatory Techniques: The Case of Automotive Fuel Economy Get access John E. Kwoka, Jr. John E. Kwoka, Jr. George Washington University Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 98, Issue 4, November 1983, Pages 695–704, https://doi.org/10.2307/1881784 Published: 01 November 1983

Journal Article Schumpeter and Marx on Capitalist Transformation Get access John E. Elliott John E. Elliott University of Southern California Search for other works by this author on: Oxford Academic Google Scholar The Quarterly Journal of Economics, Volume 98, Issue 2, May 1983, Pages 333–336, https://doi.org/10.2307/1885629 Published: 01 May 1983

Recent empirical work by Banz (1981) and Reinganum (1981) documents abnormally large risk-adjusted returns for small firms listed on the NYSE and the AMEX. The strength and persistence with which the returns appear lead both authors to conclude the single-period, two-parameter capital asset pricing model is misspecified. This study (1) confirms that total market value of common stock equity varies inversely with risk-adjusted returns, (2) demonstrates that price per share does also, and (3) finds that transaction costs at least partially account for the abnormality.