Armington and constant-elasticity-of-transformation (CET) functions are routinely used in computable general equilibrium (CGE) Models to model foreign trade. The CET function is applied to producer decisions about whether to export and or sell at home. Decisions by domestic demanders whether to...

In this paper, a structural gravity model is presented which features intra-sector heterogeneity in agricultural productivity systematically linked to land and climate characteristics. The "systematic heterogeneity" (SH) gravity model predicts that countries with similar land and climate...

The interaction between the effective (yE) and the natural rates of growth (yN) is a central part — implicitly or explicitly addressed — in all growth models. A stable equilibrium requires these two rates to converge; otherwise, one or more key macroeconomic variables would be rising or...