Behrens, Kristian; Mion, Giordano; Murata, Yasusada; … - Centre for Economic Performance, LSE - 2009
elasticity and multiple asymmetric regions, in which trade integration induces wage and productivity changes. Using Canada …-US interregional trade data, we structurally estimate a theory-based gravity equation system featuring endogenous wages and … productivity. Given the estimated parameter values, we first decompose border effects into a pure border effect, relative and …