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frictions in production and distribution of a many country world. The starting point is the international incidence of … reduce sectoral skill premia. Bigger sellers' incidence by country (sector) reduces equilibrium shares of world (national …
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Short run gravity is a geometric weighted average of long run gravity and bilateral capacity. The model features (i) joint trade costs endogenous to bilateral volumes, (ii) long run gravity as a limiting case of efficient investment in bilateral capacities, (iii) a structural ratio of short run...
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