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This paper models the relationship between countries' distance from global economic activity, endogenous investments in education, and economic development. Firms in remote locations pay greater trade costs on both exports and intermediate imports, reducing the amount of value added left to...
Persistent link: https://www.econbiz.de/10012469256
-order features of the data, such as gravity equations for flows of goods and people. Yet they remain sufficiently tractable as to …
Persistent link: https://www.econbiz.de/10012481124
simple algorithm for its calculation. When combined with detailed spatial geography data from Europe, the equilibrium …
Persistent link: https://www.econbiz.de/10014421232
We develop a dynamic multi-country general equilibrium model to investigate forces acting on the global economy during the Great Recession and ensuing recovery. Our multi-sector framework accounts completely for countries' trade, investment, production, and GDPs in terms of different sets of...
Persistent link: https://www.econbiz.de/10012461991
Gravity-based cross-sectional evidence indicates that currency unions stimulate trade; cross-sectional evidence …
Persistent link: https://www.econbiz.de/10012470886
One of the most successful empirical relationships in international trade is the gravity equation, which relates … characteristics. A key decision for researchers in estimating this relationship is the level of aggregation, since the gravity …, we derive an exact Jensen's inequality correction term for the gravity equation in a nested constant elasticity of …
Persistent link: https://www.econbiz.de/10012479420
Almost Ideal gravity associates zero trade flows with variable and fixed trade cost variation in a flexible demand …
Persistent link: https://www.econbiz.de/10012482496
2011. Specifically we apply the aggregate AIDS-based gravity model as developed in Fajgelbaum and Khandelwal (2016) to a …
Persistent link: https://www.econbiz.de/10012453593
We develop a multi-sector gravity model with heterogeneous workers to quantify the aggregate and group-level welfare …
Persistent link: https://www.econbiz.de/10012453974
. Theoretically, we exploit a structural gravity model to derive a closed-form solution for a widely-used measure of market potential …
Persistent link: https://www.econbiz.de/10012455944