in this kind of models. The theories discussed are the Gravity Approach and the New Economic Geography. We dedicate much … to the explanation of the micro-foundations of the gravity equation and to the solution of the Border Puzzle achieved in … Gravity and NEG relations, are discussed in order to show how much these two theories are used in empirical trade analysis. …

Distance effects in empirical gravity equations appear to be too high to be explained by transport costs alone … existing empirical evidence. An empirical gravity equation is used to estimate the effect of exporter networks on distance …

Barriers to international trade are known to be large. But have they become smaller over time? Building on the gravity … directly from the model's gravity equation without imposing arbitrary trade cost functions. As an illustration, I show that U …

this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which …. Even if no border frictions exist at the micro level, gravity estimation on aggregate data can still produce large border …