Showing 1 - 10 of 32
We build a model of tacit collusion between firms that operate in multiple markets to study the effects of trade costs. A key feature of the model is that cartel discipline is endogenous. Thus, markets that appear segmented are strategically linked via the incentive compatibility constraint....
Persistent link: https://www.econbiz.de/10011781965
We develop a novel two-stage methodology that allows us to study the empirical determinants of the ex post effects of past free trade agreements (FTAs) as well as obtain ex ante predictions for the effects of future FTAs. We first identify 908 unique estimates of the effects of FTAs on different...
Persistent link: https://www.econbiz.de/10011560677
Recent work on the effects of currency unions (CUs) on trade stresses the importance of using many countries and years in order to obtain reliable estimates. However, for large samples, computational issues limit choice of estimator, leaving an important methodological gap. To address this gap,...
Persistent link: https://www.econbiz.de/10011653596
We develop a simple estimation procedure for general equilibrium (GE) comparative static analysis of gravity models … equilibrium responses. The method works by fully exploiting the combined properties of structural gravity and PPML. Our procedures …
Persistent link: https://www.econbiz.de/10011384362
We review and interpret the main theoretical developments in the gravity literature from its very early, a …-theoretical applications to the latest structural contributions. We also discuss challenges and implement methods to estimate empirical gravity … equations. We finish with a presentation and examples of numerical simulations with the structural gravity model. Throughout the …
Persistent link: https://www.econbiz.de/10011611143
(2002) argue that the canonical gravity model of trade fails when confronted with bilateral trade balances data, dubbing … gravity literature, we demonstrate that the workhorse international trade model actually performs well in explaining bilateral … perform several general equilibrium experiments within the same structural gravity framework to show that free trade …
Persistent link: https://www.econbiz.de/10012064371
and welfare. We make use of the rich dimensionality of our data and of the latest developments in the structural gravity …
Persistent link: https://www.econbiz.de/10012031035
intranational trade); we find evidence of this bias using a properly specified gravity equation. Second, our novel methodology … phase-ins of agreements, lagged terms-of-trade effects, reverse causality, various estimation techniques, disaggregation …
Persistent link: https://www.econbiz.de/10010212649
A structural gravity model is used to estimate barriers to services trade across many sectors, countries and time …
Persistent link: https://www.econbiz.de/10011375675
. The model combines structural gravity with a capital accumulation specification of the transition between steady states …
Persistent link: https://www.econbiz.de/10011298529