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This paper provides a minimalist derivation of the gravity equation and uses it to identify three common errors in the literature, what we call the gold, silver and bronze medal errors. The paper provides estimates of the size of the biases taking the currency union trade effect as an example....
Persistent link: https://www.econbiz.de/10012760650
This paper provides a minimalist derivation of the gravity equation and uses it to identify three common errors in the literature, what we call the gold, silver and bronze medal errors. The paper provides estimates of the size of the biases taking the currency union trade effect as an example....
Persistent link: https://www.econbiz.de/10012466150
Persistent link: https://www.econbiz.de/10012582340
this upward bias results from aggregation along the extensive industry margin, which is why the bias is much smaller and …
Persistent link: https://www.econbiz.de/10011901753
potential existence of a continental bias in world trade flows on a sample of 182 countries over the period 1990-2006. Using … evidence of an economically significant continental bias in trade. It implies that, other things equal, countries located on …
Persistent link: https://www.econbiz.de/10011575604
Persistent link: https://www.econbiz.de/10012133762
this upward bias results from aggregation along the extensive industry margin, which is why the bias is much smaller and …
Persistent link: https://www.econbiz.de/10011897226
Eurostat's Comext and Prodcom databases. A gravity application delivers a large set of product-level 'home bias' estimates …
Persistent link: https://www.econbiz.de/10014541847
A basic assumption of the gravity equation of international trade is that increasing trade costs lower exports. But intuition and theory imply that a high export volume lowers bilateral trade costs as well, because a fixed cost intensive trade sector probably bears lower average costs with more...
Persistent link: https://www.econbiz.de/10014198178
inter-city trade data, we identify a substantial centrality bias: Shipments from central places to their hinterland are 50 …%-125% larger than predicted by gravity forces. This upward bias stems from aggregating across industries, which are hierarchically … centrality bias along the margins of our data, we find that the by far largest part of this aggregation bias can be attributed to …
Persistent link: https://www.econbiz.de/10014285470