Heid, Benedikt; Larch, Mario; Yotov, Yoto V. - In: Canadian Journal of Economics/Revue canadienne d'économique 54 (2021) 1, pp. 376-409
We propose a simple method to identify the effects of unilateral and non-discriminatory trade policies on bilateral trade within a theoretically consistent empirical gravity model. Specifically, we argue that structural gravity estimations should be performed with data that include not only...