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Gravity Without Apology : The Science of Elasticities, Distance, and Trade
Carrère, Céline - 2020
Gravity as both fact and theory is one of the great success stories of recent research on international trade, and has featured prominently in the policy debate over Brexit. We first review the facts, noting the overwhelming evidence that trade tends to fall with distance. We then introduce some...
Persistent link: https://www.econbiz.de/10012839359
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Trade Costs, Market Access and Economic Geography : Why the Empirical Specification of Trade Costs Matters
Bosker, Erik Maarten; Garretsen, Harry - 2021
Trade costs are crucial in new economic geography (NEG) models. The unavailability of actual trade costs data requires the approximation of trade costs. Most NEG studies do not deal with the ramifications of the particular trade costs specification used. This paper shows that the specification...
Persistent link: https://www.econbiz.de/10013316892
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One Nation, One Language? Domestic Language Diversity, Trade and Welfare
Gurevich, Tamara; Herman, Peter; Toubal, Farid; Yotov, Yoto - 2021
Using new data on linguistic diversity across and within countries, we examine novel channels though which language … general equilibrium implications of domestic language proximity, we simulate the repeal of Quebec’s Bill 101, which made … French an official language in Canada and established fundamental language rights for French-speakers. The analysis …
Persistent link: https://www.econbiz.de/10013249655
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Dialects, cultural Identity, and economic exchange
Falck, Oliver; Heblich, Stephan; Lameli, Alfred; … - 2010
We investigate whether time-persistent cultural borders impede economic exchange across regions of the same country. To measure cultural differences we evaluate, for the first time in economics, linguistic micro-data about phonological and grammatical features of German dialects. These data are...
Persistent link: https://www.econbiz.de/10010266077
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Exploring the intensive and extensive margins of world trade
Felbermayr, Gabriel J.; Kohler, Wilhelm K. - 2004
explain movements on both margins. A Tobit estimation of this model resolves the so-called ?distance-puzzle?. It also finds …
Persistent link: https://www.econbiz.de/10010274453
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The (Structural) Gravity of Epidemics
Cuñat, Alejandro - 2020
Epidemiological models assume gravity-like interactions of individuals across space without microfoundations. We combine a simple epidemiological frame-work with a dynamic model of individual location choice. The model predicts that flows of people across space obey a structural gravity...
Persistent link: https://www.econbiz.de/10012833717
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Revisiting Time as a Trade Barrier : Evidence from a Panel Structural Gravity Model
Oberhofer, Harald - 2019
In this paper we revisit the evidence on the effects of time spent on border-crossing procedures for international trade using a theory-consistent structural gravity model. We exploit a rich panel data set including domestic trade flows and employ a recent econometric estimator that exhibits...
Persistent link: https://www.econbiz.de/10012892158
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Exititis in the UK : Gravity Estimates in the Aftermath of Brexit
Brakman, Steven; Garretsen, Harry; Kohl, Tristan - 2021
The withdrawal of the United Kingdom from the European Union has had disruptive effects on international trade. As part of its ‘Global Britain’ strategy, in the wake of Brexit, the UK is pursuing a series of Free Trade Agreements with countries around the world, including Canada, Japan,...
Persistent link: https://www.econbiz.de/10013212259
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Estimating Gravity from the Short to the Long Run : A Simple Solution to the ‘International Elasticity Puzzle’
Anderson, James E.; Yotov, Yoto V. - 2023
We propose a simple and flexible reduced-form econometric approach to estimate gravity models in the short and the long run. The theoretical lens for interpreting our methods amends the canonical Lucas-Prescott adjustment formulation to allow for time-interval-varying...
Persistent link: https://www.econbiz.de/10014264152
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The Variation of Gravity within Countries (or 15 Reasons Why Gravity Should Be Estimated with Domestic Trade Flows)
Yotov, Yoto - 2021
The gravity equation is the workhorse model for analysis of bilateral trade flows. Despite solid theoretical foundations and clear gains from theory-consistent policy analysis, there are still gaps between gravity theory and empirics. This paper focuses on domestic trade flows, and I argue that...
Persistent link: https://www.econbiz.de/10013228864