Mitra, Devashish; Trindade, Vitor; Dalgin, Muhammed - National Bureau of Economic Research (NBER) - 2004
In this paper, we show that inequality is an important determinant of import demand, in that it augments the standard gravity model in a significant way. We interpret this result with the aid of a model in which tastes are nonhomothetic. Classification of products, based on the correlation...