@techreport{oai:ir.ide.go.jp:00037965,
 author = {Ando, Asao and Meng, Bo and Chao, Qu},
 month = {Jan},
 note = {application/pdf, IDP000204_001, The Armington Assumption in the context of multi-regional CGE models is commonly
interpreted as follows: Same commodities with different origins are imperfect substitutes for each
other. In this paper, a static spatial CGE model that is compatible with this assumption and
explicitly considers the transport sector and regional price differentials is formulated. Trade
coefficients, which are derived endogenously from the optimization behaviors of firms and
households, are shown to take the form of a potential function. To investigate how the elasticity
of substitutions affects equilibrium solutions, a simpler version of the model that incorporates
three regions and two sectors (besides the transport sector) is introduced. Results indicate: (1) if
commodities produced in different regions are perfect substitutes, regional economies will be
either autarkic or completely symmetric and (2) if they are imperfect substitutes, the impact of
elasticity on the price equilibrium system as well as trade coefficients will be nonlinear and
sometimes very sensitive.},
 title = {Trade Coefficients and the Role of Elasticity in a Spatial CGE Model Based on the Armington Assumption},
 year = {2009}
}