Article ID Journal Published Year Pages File Type
962326 Journal of International Economics 2013 12 Pages PDF
Abstract
► I derive a micro-founded gravity equation from a translog demand system. ► Translog gravity generates an endogenous trade cost elasticity. ► Trade costs have a heterogeneous impact across country pairs. ► Some trade flows are predicted to be zero. ► 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
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