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Quantifying the welfare effects of trade liberalization is a core issue in international trade. Existing frameworks assume perfect labor markets and therefore ignore the effects of aggregate employment changes for welfare. We develop a quantitative trade framework which explicitly models labor...
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Tobit estimation, truncated regression, probit regression and substitutions for zero flows have been suggested. We argue …
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its estimation using panel data. We suggest to employ K-mean clustering to group countries according to the gravity … separately, the estimated coefficients and their standard errors vary sufficiently. Moreover, we show that the pooled estimation …
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