Economics Dictionary of ArgumentsHome
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| Nontraded goods: Nontraded goods are products or services that cannot be easily bought or sold across international borders. Their consumption is tied to their location of production due to factors like high transportation costs (e.g., houses, haircuts, local services), perishability, or inherent characteristics requiring local delivery. Their prices are primarily determined by local supply and demand. See also Goods, Commodity, Inalienability._____________Annotation: The above characterizations of concepts are neither definitions nor exhausting presentations of problems related to them. Instead, they are intended to give a short introduction to the contributions below. – Lexicon of Arguments. | |||
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Robert C. Feenstra on Nontraded Goods - Dictionary of Arguments
Nontraded Goods/Feenstra: (…) most of the U.S. economy – as with other industrial countries – is devoted to nontraded goods and services. It is highly desirable, therefore, to incorporate the nontraded sector into the estimation. One way to do this is to estimate aggregate GDP or cost functions, distinguishing nontraded and traded goods, as well as different types of labor. This approach has been taken by several authors, as follows. Tombazos (1999)(1) distinguishes types of labor by identifying industries that are intensive in skilled or unskilled labor, and then forming aggregate wages and employment indexes over each group of industries; these indexes are then used as a proxy for the price and quantity of skilled and unskilled labor. He incorporates skilled labor, unskilled labor, capital and imports into the estimation of an aggregate cost function for the U.S., over 1967-1994, with a single aggregate output (including exports). His major conclusion is that a drop in the import price reduces the demand for unskilled labor, but raises the demand for skilled labor in the U.S. Missing from his analysis, though, is a discussion of how much import prices have fallen, and therefore, how much of the shift towards skilled labor can be explained by this channel of influence. >Automation, >Skilled labour. 1. Tombazos, Christis G., 1999, “The Role of Imports in Expanding the Demand Gap Between Skilled and Unskilled Labor in the U.S.,” Applied Economics, 31, 509-516._____________Explanation of symbols: Roman numerals indicate the source, arabic numerals indicate the page number. The corresponding books are indicated on the right hand side. ((s)…): Comment by the sender of the contribution. Translations: Dictionary of Arguments The note [Concept/Author], [Author1]Vs[Author2] or [Author]Vs[term] resp. "problem:"/"solution:", "old:"/"new:" and "thesis:" is an addition from the Dictionary of Arguments. If a German edition is specified, the page numbers refer to this edition. |
Feenstra I Robert C. Feenstra Advanced International Trade University of California, Davis and National Bureau of Economic Research 2002 |
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