@techreport{oai:ir.ide.go.jp:00050764, author = {Oyamada, Kazuhiko}, month = {Feb}, note = {application/pdf, IDP000740_001, This study explores the behavioral characteristics of the Melitz-type heterogeneous and the Krugman-type homogeneous firm models that endogenize substitution elasticity as an increasing function of the total number of varieties that are available in each destination country/region. Using a case the United States (US) liberalizes imports of manufactured products from China as an example, simulation experiments with a three-region, three-sector applied general equilibrium model of global trade revealed that economic agents comply with more inefficient circumstances when the importer's preference for variety intensifies. Whereas, a more efficient environment enables countries, including those excluded from a free trade agreement, to receive welfare gains when the influence of the total number of varieties to the substitution elasticity becomes strong.}, title = {Behavioral characteristics of applied general equilibrium models with variable elasticity of substitution between varieties from different sources}, year = {2019} }