Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
962326 | Journal of International Economics | 2013 | 12 Pages |
Abstract
⺠I derive a micro-founded gravity equation from a translog demand system. ⺠Translog gravity generates an endogenous trade cost elasticity. ⺠Trade costs have a heterogeneous impact across country pairs. ⺠Some trade flows are predicted to be zero. ⺠I find empirical evidence consistent with a varying trade cost elasticity.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Dennis Novy,