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institutional variables? In this paper, we generalize F&R's geography-based empirical strategy to a panel setting. We observe that … in panel setups where it is possible to fully control for geographical and historical determinants of countries … disasters ; instrumental variable estimation ; panel econometrics …
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We use an augmented gravity model to revisit the effect of similarity in income distributions on bilateral trade flows. Disentangling supply-side and demand-side mechanisms, we document a robust new regularity: while differences in average incomes between two countries increase trade,...
Persistent link: https://www.econbiz.de/10010374075
Since July 2013, the EU and the United States have been negotiating a preferential trade agreement, the Transatlantic Trade and Investment Partnership (TTIP). We use a multicountry, multi-industry Ricardian trade model with national and international inputoutput linkages to quantify its...
Persistent link: https://www.econbiz.de/10011519132
This paper develops a threshold-augmented dynamic multi-country model (TG-VAR) to quantify the macroeconomic effects of Covid-19. We show that there exist threshold effects in the relationship between output growth and excess global volatility at individual country levels in a significant...
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The paper contributes to the growing global VAR (GVAR) literature by showing how global and national shocks can be identified within a GVAR framework. The usefulness of the proposed approach is illustrated in an application to the analysis of the interactions between public debt and real output...
Persistent link: https://www.econbiz.de/10011956353
World trade evolves at two margins. Where a bilateral trading relationship already exists it may increase through time (intensive margin). But trade may also increase if a trading bilateral relationship is newly established between countries that have not traded with each other in the past...
Persistent link: https://www.econbiz.de/10011450770