Fall 2024 | Princeton University
The objective of the course is to serve as a practical guide for trade policy analysis with the workhorse model in international trade – the structural gravity model. To pursue this objective, the course combines cutting-edge academic research with extensive policy experience, and it offers a comprehensive and balanced approach between theory and empirics. The course traces the evolution of gravity from its initial a-theoretical applications to the most recent structural estimation gravity frameworks, e.g., sectoral dynamic gravity with input-output linkages. After deriving the original gravity model step by step, it is shown that the same model can be derived from many different theoretical micro-foundations. Guided by theory, a set of best practices and recommendations are established for estimating the gravity equation, and the importance of these recommendations is demonstrated and reinforced through a series of applications for bilateral policies (e.g., FTAs, sanctions, etc.) and country-specific and non-discriminatory characteristics (e.g., subsidies, institutional quality, etc.). The same gravity framework is then used to translate the partial equilibrium policy estimates into full general equilibrium effects on various economic outcomes, e.g., trade, prices, welfare. The course concludes with a demonstration of how the gravity model of trade can be nested into a wide range of production models with a focus on dynamic capital accumulation and FDI. The lectures are complemented with hands-on sessions that allow the participants to implement and experiment with the recommendations to estimate the gravity equation and to capitalize on the general equilibrium capabilities of the model. Importantly, owing to recent research developments, all exercises and applications in the course (including the general equilibrium simulations), can be performed with standard built-in commands directly in Stata.
General
I. SURVEY ARTICLES
[\o] Anderson, James E. (2011). “The Gravity Model.” Annual Review of Economics 3: 133–160.
[\o] Anderson, James E., and Eric van Wincoop. (2004). “Trade Costs.” Journal of Economic Literature 42(3): 691–751.
[\o] Baier, Scott L., Amanda Kerr, and Yoto V. Yotov. (2018). “Gravity, Distance, and International Trade.” in Bruce A. Blonigen and Wesley W. Wilson (eds.), Handbook of International Trade and Transportation, Edward Elgar Publishing, Chapter 2, pp. 15–78.
[\o] Baldwin, R.E., and D. Taglioni. (2006). “Gravity for Dummies and Dummies for Gravity Equations.” NBER Working Paper No. 12516.
[\a] Bergstrand, Jeffrey H., and Peter Egger. (2011). “Gravity Equations and Economic Frictions in the World Economy.” In The Palgrave Handbook of International Trade, Palgrave Macmillan, Chapter 17, pp. 532–570.
[\a] Caliendo, Lorenzo, and Fernando Parro. (2022). “Trade Policy.” Handbook of International Economics 5: 219–295.
[\a] Costinot, Arnaud, and Andrés Rodríguez-Clare. (2014). “Trade Theory with Numbers: Quantifying the Consequences of Globalization.” In Gita Gopinath, Elhanan Helpman, and Kenneth S. Rogoff (eds.), Handbook of International Economics, Vol. 4, Elsevier Ltd., Oxford, Chapter 4.
[\a] Head, Keith, and Thierry Mayer. (2014). “Gravity Equations: Workhorse, Toolkit, and Cookbook.” In Gita Gopinath, Elhanan Helpman, and Kenneth S. Rogoff (eds.), Handbook of International Economics, Vol. 4, Elsevier Ltd., Oxford, Chapter 3.
[\a] Larch, Mario, Serge Shikher, and Yoto V. Yotov. (2024). “Estimating Gravity Equations: Theory Implications, Econometric Developments, and Practical Tips.” Unpublished Manuscript, Drexel University.
[\o] Santos Silva, J.M.C., and Silvana Tenreyro. (2021). “The Log of Gravity at 15.” School of Economics Discussion Papers 0121, University of Surrey, January.
[\a] Yotov, Yoto V. (2024). “The Evolution of Structural Gravity: The Workhorse Model of Trade.” Contemporary Economic Policy.
[\a] Yotov, Yoto V. (2022). “On the Role of Domestic Trade Flows for Estimating the Gravity Model of Trade.” Contemporary Economic Policy.
II. THEORY
[\a] Anderson, James E., “A Theoretical Foundation for the Gravity Equation,” American Economic Review, 1979, 69 (1), 106–116.
[\o] Anderson, James E. and Eric van Wincoop, “Gravity with Gravitas: A Solution to the Border Puzzle,” American Economic Review, 2003, 93 (1), 170–192.
[\o] Anderson, James E. and Yoto V. Yotov, “The Changing Incidence of Geography,” American Economic Review, 2010, 100 (5), 2157–2186.
[\o] Anderson, James E. and Yoto V. Yotov, “Short Run Gravity,” Journal of International Economics, 2020, 126, September.
[\o] Arkolakis, Costas, Arnaud Costinot, and Andrés Rodriguez-Clare, “New Trade Models, Same Old Gains?,” American Economic Review, 2012, 102 (1), 94–130.
[\o] Bergstrand, Jeffrey H., “The Gravity Equation in International Trade: Some Microeconomic Foundations and Empirical Evidence,” Review of Economics and Statistics, 1985, 67 (3), 474–481.
[\o] Bergstrand, Jeffrey H., “The Generalized Gravity Equation, Monopolistic Competition, and the Factor-Proportions Theory of Trade,” Review of Economics and Statistics, 1989, 71 (1), 143–153.
[\a] Carrère, Céline, Monika Mrázová, and J. Peter Neary, “Gravity Without Apology: The Science of Elasticities, Distance and Trade,” Economic Journal, 2020, 130 (628), 880–910.
[\o] Chaney, Thomas, “Distorted Gravity: The Intensive and Extensive Margins of International Trade,” American Economic Review, 2008, 98 (4), 1707–1721.
[\o] Chor, Davin, “Unpacking Sources of Comparative Advantage: A Quantitative Approach,” Journal of International Economics, November 2010, 82 (2), 152–167.
[\o] Costinot, Arnaud, Dave Donaldson, and Ivana Komunjer, “What Goods Do Countries Trade? A Quantitative Exploration of Ricardo’s Ideas,” Review of Economic Studies, 2012, 79 (2), 581–608.
[\o] De Benedictis, Luca and Daria Taglioni, “The Gravity Model in International Trade,” chapter 4 in Luca De Benedictis and Luca Salvatici (eds.), The Trade Impact of European Union Preferential Policies, Springer, 2011.
[\a] Eaton, Jonathan and Samuel Kortum, “Technology, Geography and Trade,” Econometrica, 2002, 70 (5), 1741–1779.
[\a] Fieler, Ana Cecília, “Nonhomotheticity and Bilateral Trade: Evidence and a Quantitative Explanation,” Econometrica, 2011, 79 (4), 1069–1101.
[\a] Heid, Benedikt and Mario Larch, “Gravity with Unemployment,” Journal of International Economics, 2016, 101, 70–85.
[\c] Krugman, Paul, Development, Geography, and Economic Theory, Vol. 1 of MIT Press Books, The MIT Press, 1997.
[\o] Krugman, Paul R., “Scale Economies, Product Differentiation, and the Pattern of Trade,” American Economic Review, 1980, 70 (5), 950–959.
[\a] Melitz, Marc J., “The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity,” Econometrica, 2003, 71 (6), 1695–1725.
[\o] Olivero, María Pía and Yoto V. Yotov, “Dynamic Gravity: Endogenous Country Size and Asset Accumulation,” Canadian Journal of Economics, 2012, 45 (1), 64–92.
III. ESTIMATION
[\o] Arvis, Jean-Francois and Ben Shepherd, “The Poisson Quasi-Maximum Likelihood Estimator: A Solution to the ‘Adding up’ Problem in Gravity Models,” Applied Economics Letters, April 2013, 20 (6), 515–519.
[\o] Baier, Scott L. and Jeffrey H. Bergstrand, “On the Endogeneity of International Trade Flows and Free Trade Agreements,” Unpublished Manuscript, 2002.
[\a] Baier, Scott L. and Jeffrey H. Bergstrand, “Do Free Trade Agreements Actually Increase Members’ International Trade?,” Journal of International Economics, 2007, 71 (1), 72–95.
[\o] Baier, Scott L. and Jeffrey H. Bergstrand, “Bonus Vetus OLS: A Simple Method for Approximating International Trade-cost Effects using the Gravity Equation,” Journal of International Economics, 2009, 77 (1), 77–85.
[\a] Borusyak, Kirill, Xavier Jaravel, and Jann Spiess, “Revisiting Event Study Designs: Robust and Efficient Estimation,” The Review of Economic Studies, 2024
[\a] Callaway, Brantly and Pedro H.C. Sant’Anna, “Difference-in-Differences with multiple time periods,” Journal of Econometrics, 2021, 225 (2), 200–230. Themed Issue: Treatment Effect 1.
[\a] Correia, Sergio, Paulo Guimaraes, and Tom Zylkin, “Fast Poisson estimation with high-dimensional fixed effects,” Stata Journal, March 2020, 20 (1), 95–115.
[\a] Davies, Richard B. and Clifford M. Guy, “The Statistical Modeling of Flow Data When the Poisson Assumption Is Violated,” Geographical Analysis, 1987, 19 (4), 300–314.
[\a] de Chaisemartin, Clement and Xavier D’Haultfoeuille, “Two-Way Fixed Effects Estimators with Heterogeneous Treatment Effects,” American Economic Review, September 2020, 110 (9), 2964–2996.
[\a] Egger, Peter and Michael Pfaffermayr, “The Proper Panel Econometric Specification of the Gravity Equation: A Three Way Model with Bilateral Interaction Effects,” Empirical Economics, July 2003, 28 (3), 571–580.
[\a] Egger, Peter H. and Filip Tarlea, “Multi-way clustering estimation of standard errors in gravity models,” Economics Letters, 2015, 134 (C), 144–147.
[\o] Egger, Peter H., Mario Larch, and Yoto V. Yotov, “Gravity Estimations with Interval Data: Revisiting the Impact of Free Trade Agreements,” Economica, January 2022, 89 (353), 44–61.
[\o] Fally, Thibault, “Structural Gravity and Fixed Effects,” Journal of International Economics, 2015, 97 (1), 76–85.
[\o] Flowerdew, Robin, “Fitting the Lognormal Gravity Model to Heteroscedastic Data,” Geographical Analysis, 1982, 14 (3), 263–267.
[\o] Flowerdew, Robin, and Murray Aitkin, “A Method of Fitting the Gravity Model Based on the Poisson Distribution,” Journal of Regional Science, 1982, 22 (2), 191–202.
[\o] Freeman, Rebecca, Mario Larch, Angelos Theodorakopoulos, and Yoto Yotov, “Unlocking New Methods to Estimate Country-specific Trade Costs and Trade Elasticities,” School of Economics Working Paper Series 2021-17, LeBow College of Business, Drexel University, November 2021.
[\o] Heid, Benedikt, Mario Larch, and Yoto V. Yotov, “A Simple Method to Estimate the Effects of Nondiscriminatory Trade Policy within Structural Gravity Models,” Canadian Journal of Economics, March 2021.
[\a] Henderson, Daniel J. and Daniel L. Millimet, “Is gravity linear?,” Journal of Applied Econometrics, 2008, 23 (2), 137–172.
[\o] Hull, Peter, “Estimating Treatment Effects in Mover Designs,” 2018.
[\o] Kwon, Ohyun, Jangsu Yoon, and Yoto Yotov, “A Generalized Poisson-Pseudo Maximum Likelihood Estimator,” School of Economics Working Paper Series 2022-13, LeBow College of Business, Drexel University, December 2022.
[\o] Lampe, Markus, Kevin O’Rourke, Lorenz Reiter, and Yoto V. Yotov, “The Empire Project: Trade Policy in Interwar Canada,” NBER Working Papers 31238, National Bureau of Economic Research, May 2023.
[\a] Larch, Mario, Serge Shikher, and Yoto V. Yotov, “Estimating Gravity Equations: Theory Implications, Econometric Developments, and Practical Tips,” School of Economics Working Paper Series 2024-8, LeBow College of Business, Drexel University, 2024.
[\o] Martin, William and Cong S. Pham, “Estimating the gravity model when zero trade flows are frequent and economically determined,” Applied Economics, 2020, 52 (26), 2766–2779.
[\o] Nagengast, Arne and Yoto V. Yotov, “Staggered Difference-in-Differences in Gravity Settings: Revisiting the Effects of Trade Agreements,” American Economic Journal: Applied Economics, Forthcoming, January 2025.
[\o] Nagengast, Arne, Fernando Rios-Avila, and Yoto Yotov, “The European Single Market and Intra-EU Trade: An Assessment with Heterogeneity-Robust Difference-in-Differences Methods,” School of Economics Working Paper Series 2024-5, LeBow College of Business, Drexel University, April 2024.
[\o] Nizalova, Olena Y. and Irina Murtazashvili, “Exogenous Treatment and Endogenous Factors: Vanishing of Omitted Variable Bias on the Interaction Term,” Journal of Econometric Methods, 2016, 5 (1).
[\a] Novy, Dennis, “International Trade without CES: Estimating Translog Gravity,” Journal of International Economics, 2013, 89 (2), 271–282.
[\a] Pfaffermayr, Michael, “Constrained Poisson pseudo maximum likelihood estimation of structural gravity models,” International Economics, 2020, 161 (C), 188–198.
[\o] Santos Silva, J.M.C. and Silvana Tenreyro, “The Log of Gravity,” Review of Economics and Statistics, 2006, 88 (4), 641–658.
[\a] Weidner, Martin and Thomas Zylkin, “Bias and consistency in three-way gravity models,” Journal of International Economics, 2021, 132 (C).
[\o] Wooldridge, Jeffrey M., “Two-way Fixed Effects, the Two-Way Mundlak Regression, and Difference-in-Differences Estimators,” Available at SSRN 3906345, 2021.
[\a] Wooldridge, Jeffrey M., “Simple Approaches to Nonlinear Difference-in-Differences with Panel Data,” The Econometrics Journal, 2023.
IV. APPLICATIONS
[\a] Agnosteva, Delina E., James E. Anderson, and Yoto V. Yotov, “Intra-national Trade Costs: Assaying Regional Frictions,” European Economic Review, 2019, 112 (C), 32–50.
[\o] Arkolakis, C., Treb Alen, and Yuta Takahashi, “Universal Gravity,” Journal of Political Economy, 2020, 128 (2), 393–433.
[\o] Anderson, James E. and Yoto V. Yotov, “Gravity in Transition,” School of Economics Working Paper Series 2022-14, LeBow College of Business, Drexel University, December 2022.
[\a] Anderson, James E. and Yoto V. Yotov, “Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002,” Journal of International Economics, 2016, 99 (C), 279–298.
[\o] Anderson, James E., Mykyta Vesselovsky, and Yoto V. Yotov, “Gravity with Scale Economies,” Journal of International Economics, 2016, 100, 174–193.
[\a] Baier, Scott L. and Jeffrey H. Bergstrand, “Do Free Trade Agreements Actually Increase Members’ International Trade?,” Journal of International Economics, 2007, 71 (1), 72–95.
[\a] Baier, Scott L., Jeffrey H. Bergstrand, and Matthew W. Clance, “Heterogeneous Effects of Economic Integration Agreements,” Journal of Development Economics, 2018, 135 (C), 587–608.
[\a] Baier, Scott L., Yoto V. Yotov, and Thomas Zylkin, “On the Widely Differing Effects of Free Trade Agreements: Lessons from Twenty Years of Trade Integration,” Journal of International Economics, 2019, 116, 206–226.
[\o] Baldwin, Richard, “The Euro’s Trade Effects,” Working Paper Series 594, European Central Bank, 2006.
[\a] Baldwin, Richard E., “Multilateralising Regionalism: Spaghetti Bowls as Building Blocs on the Path to Global Free Trade,” World Economy, 2006, 29, 1451–1518.
[\o] Balistreri, Edward J. and Russell H. Hillberry, “Structural Estimation and the Border Puzzle,” Journal of International Economics, 2007, 72 (2), 451–463.
[\a] Bensassi, Sami and Inmaculada Martinez-Zarzoso, “How Costly is Modern Maritime Piracy to the International Community?,” Review of International Economics, November 2012, 20 (5), 869–883.
[\o] Bergstrand, Jeffrey H., Mario Larch, and Yoto V. Yotov, “Economic Integration Agreements, Border Effects, and Distance Elasticities in the Gravity Equation,” European Economic Review, 2015, 78, 307–327.
[\o] Besedes, Tibor, Jing Chu, and Antu Panini Murshid, “Fly the Unfriendly Skies: The Role of Transport Costs in Gravity Models of Trade,” Working Paper, SSRN, 2023.
[\a] Beverelli, Cosimo, “Pull Factors for Migration: The Impact of Migrant Integration Policies,” Economics and Politics, September 2021.
[\a] Beverelli, Cosimo, Alexander Keck, Mario Larch, and Yoto Yotov, “Institutions, Trade, and Development: Identifying the Impact of Country-Specific Characteristics on International Trade,” Oxford Economic Papers, 2024, 76, 469–494.
[\o] Bhavnani, Rikhil, Natalia T. Tamirisa, Arvind Subramanian, and David T. Coe, “The Missing Globalization Puzzle,” IMF Working Papers 2002/171, International Monetary Fund, October 2002.
[\a] Boehm, Christoph E., Andrei A. Levchenko, and Nitya Pandalai-Nayar, “The Long and Short (Run) of Trade Elasticities,” Technical Report, National Bureau of Economic Research, 2020.
[\a] Borchert, Ingo, Mario Larch, Serge Shikher, and Yoto Yotov, “Disaggregated Gravity: Benchmark Estimates and Stylized Facts from a New Database,” Review of International Economics, 2021
[\a] Boulhol, Herve and Alain de Serres, “Have Developed Countries Escaped the Curse of Distance?,” Journal of Economic Geography, January 2010, 10 (1), 113–139.
[\o] Bradley, Sebastien, Federico Carril-Caccia, and Yoto Yotov, “Reassessing the Effects of Corporate Income Taxes on Mergers and Acquisitions Using Empirical Advances in the Gravity Literature,” School of Economics Working Paper Series 2023-8, LeBow College of Business, Drexel University, December 2023.
[\o] Breinlich, Holger, Valentina Corradi, Nadia Rocha, Michele Ruta, J.M.C. Santos Silva, and Tom Zylkin, “Machine Learning in International Trade Research: Evaluating the Impact of Trade Agreements,” CEP Discussion Papers dp1776, Centre for Economic Performance, LSE, June 2021.
[\o] Brun, Jean-Francois, Céline Carrère, Patrick Guillaumont, and Jaime de Melo, “Has Distance Died? Evidence from a Panel Gravity Model,” World Bank Economic Review, 2005, 19 (1), 99–120.
[\a] Buch, Claudia M., Jorn Kleinert, and Farid Toubal, “The Distance Puzzle: On the Interpretation of the Distance Coefficient in Gravity Equations,” Economics Letters, June 2004, 83 (3), 293–298.
[\o] Chen, Natalie and Dennis Novy, “Gravity and Heterogeneous Trade Cost Elasticities,” The Economic Journal, 2021, 132 (644), 1349–1377.
[\o] Cheng, I-Hui and Howard J. Wall, “Controlling for Heterogeneity in Gravity Models of Trade and Integration,” Federal Reserve Bank of St. Louis Review, 2005, 87 (1), 49–63.
[\o] Coe, David T., Arvind Subramanian, and Natalia T. Tamirisa, “The Missing Globalization Puzzle: Evidence of the Declining Importance of Distance,” IMF Staff Papers, 2007, 54 (1), 34–58.
[\a] Dai, Mian, Yoto V. Yotov, and Thomas Zylkin, “On the Trade-Diversion Effects of Free Trade Agreements,” Economics Letters, 2014, 122 (2), 321–325.
[\a] Davis, Donald R. and David E. Weinstein, “The Mystery of the Excess Trade (Balances),” American Economic Review, May 2002, 92 (2), 170–174.
[\a] de Sousa, José, “The Currency Union Effect on Trade is Decreasing Over Time,” Economics Letters, 2012, 117 (3), 917–920.
[\o] Dimitrova, Boryana V., Daniel Korschun, and Yoto V. Yotov, “When and How Country Reputation Stimulates Export Volume,” International Marketing Review, 2017, 34 (3), 377–392.
[\o] Disdier, A.-C. and K. Head, “The Puzzling Persistence of the Distance Effect on Bilateral Trade,” Review of Economics and Statistics, 2008, 90 (1), 37–48.
[\a] Donaldson, Dave, “Railroads of the Raj: Estimating the Impact of Transportation Infrastructure,” American Economic Review, April 2018, 108 (4–5), 899–934.
[\a] Egger, Peter, Mario Larch, and Rainer Winkelmann, “The Trade Effects of Endogenous Preferential Trade Agreements,” American Economic Journal: Economic Policy, 2011, 3 (3), 113–143.
[\o] Eicher, Theo and Christian Henn, “In Search of WTO Trade Effects: Preferential Trade Agreements Promote Trade Strongly, But Unevenly,” Journal of International Economics, 2011, 83 (2), 137–153.
[\o] Feenstra, Robert C., Philip Luck, Maurice Obstfeld, and Katheryn N. Russ, “In Search of the Armington Elasticity,” Review of Economics and Statistics, 2018, 100 (1), 135–150.
[\a] Glick, Reuven and Andrew K. Rose, “Does a Currency Union Affect Trade? The Time-Series Evidence,” European Economic Review, 2002, 46 (6), 1125–1151.
[\a] Glick, Reuven and Andrew K. Rose, “Currency Unions and Trade: A Post-EMU Reassessment,” European Economic Review, 2016, 87 (C), 78–91.
[\o] Felbermayr, Gabriel and Yoto V. Yotov, “From Theory to Policy with Gravitas: A Solution to the Mystery of the Excess Trade Balances,” European Economic Review, 2021, 139 (C).
[\o] Fontagné, Lionel and Yoto Yotov, “Reassessing the Impact of the Single Market and its Ability to Help Build Strategic Autonomy,” School of Economics Working Paper Series 2024-7, LeBow College of Business, Drexel University, 2024.
[\o] Fontagné, Lionel Gérard, Houssein Guimbard, and Gianluca Orefice, “Product-Level Trade Elasticities: Worth Weighting For,” CESifo Working Paper Series 8491, CESifo, 2020.
[\o] Gurevich, Tamara, Peter Herman, Farid Toubal, and Yoto Yotov, “One Nation, One Language? Domestic Language Diversity, Trade and Welfare,” School of Economics Working Paper Series 2021-8, LeBow College of Business, Drexel University, January 2021.
[\o] Head, Keith and John Ries, “Do Trade Missions Increase Trade?,” Canadian Journal of Economics, August 2010, 43 (3), 754–775.
[\a] Helpman, Elhanan, Marc Melitz, and Yona Rubinstein, “Trading Partners and Trading Volumes,” Quarterly Journal of Economics, 2008, 123 (2), 441–487.
[\a] Larch, Mario, Joschka Wanner, Yoto V. Yotov, and Thomas Zylkin, “Currency Unions and Trade: A PPML Re-Assessment with High-Dimensional Fixed Effects,” Oxford Bulletin of Economics and Statistics, June 2019, 81 (3), 487–510.
[\o] Larch, Mario, José-Antonio Monteiro, Roberta Piermartini, and Yoto Yotov, “On the Effects of GATT/WTO Membership on Trade: They are Positive and Large After All,” Canadian Journal of Economics, forthcoming, 2024.
[\a] McCallum, John, “National Borders Matter,” American Economic Review, 1995, 85 (3), 615–623.
[\o] Micco, Alejandro, Ernesto H. Stein, and Guillermo Luis Ordonez, “The Currency Union Effect on Trade: Early Evidence from EMU,” Research Department Publications 4339, Inter-American Development Bank, July 2003.
[\a] Redding, S. and A. Venables, “Economic Geography and International Inequality,” Journal of International Economics, 2004, 62 (1), 53–82.
[\a] Rose, Andrew K., “One Money, One Market: The Effect of Common Currencies on Trade,” Economic Policy, 2000, 15 (30), 08–45.
[\a] Rose, Andrew K., “Currency Unions and Trade: The Effect is Large,” Economic Policy, 2001, 16 (33), 449–461.
[\o] Rose, Andrew K. and Eric van Wincoop, “National Money as a Barrier to International Trade: The Real Case for Currency Union,” American Economic Review, 2001, 91 (2), 386–390.
[\a] Rose, Andrew K., “Do We Really Know That the WTO Increases Trade?,” American Economic Review, 2004, 94 (1), 98–114.
[\o] Ruhl, Kim J., “The International Elasticity Puzzle,” unpublished manuscript, 2008
[\c] Shikher, Serge, “Predicting the Effects of NAFTA: Now We Can Do It Better!,” Journal of International and Global Economic Studies, 2014, 5 (2), 32–59.
[\a] Simonovska, Ina and Michael E. Waugh, “The Elasticity of Trade: Estimates and Evidence,” Journal of International Economics, 2014, 92 (1), 34–50.
[\a] Soderbery, Anson, “Estimating Import Supply and Demand Elasticities: Analysis and Implications,” Journal of International Economics, 2015, 96 (1), 1–17.
[\o] Subramanian, Arvind and Shang-Jin Wei, “The WTO Promotes Trade, Strongly But Unevenly,” Journal of International Economics, 2007, 72 (1), 151–175.
[\c] Tinbergen, Jan, Shaping the World Economy: Suggestions for an International Economic Policy, New York: The Twentieth Century Fund, 1962.
[\a] Yotov, Yoto V., “A Simple Solution to the Distance Puzzle in International Trade,” Economics Letters, 2012, 117 (3), 794–798.
V. GENERAL EQUILIBRIUM ANALYSIS & NESTED GRAVITY
[\a] Anderson, James E., Mario Larch, and Yoto V. Yotov, “GEPPML: General Equilibrium Analysis with PPML,” The World Economy, October 2018, 41 (10), 2750–2782.
[\a] Anderson, James E., Mario Larch, and Yoto V. Yotov, “Trade and Investment in the Global Economy: A Multi-Country Dynamic Analysis,” European Economic Review, 2019, 120 (C).
[\o] Anderson, James E., Mario Larch, and Yoto V. Yotov, “Transitional Growth and Trade with Frictions: A Structural Estimation Framework,” Economic Journal, 2020, 130 (630), 1583–1607.
[\a] Caliendo, Lorenzo, Maximiliano Dvorkin, and Fernando Parro, “Trade and Labor Market Dynamics: General Equilibrium Analysis of the China Trade Shock,” Econometrica, May 2019, 87 (3), 741–835.
[\a] Caliendo, Lorenzo and Fernando Parro, “Estimates of the Trade and Welfare Effects of NAFTA,” Review of Economic Studies, 2015, 82 (1), 1–44.
[\a] Caliendo, Lorenzo and Fernando Parro. 2022. “Trade Policy.” Handbook of International Economics 5: 219–295.
[\a] Costinot, Arnaud and Andrés Rodriguez-Clare, “Trade Theory with Numbers: Quantifying the Consequences of Globalization,” Chapter 4 in Handbook of International Economics Vol. 4, eds. Gita Gopinath, Elhanan Helpman, and Kenneth S. Rogoff, Elsevier Ltd., Oxford, 2014.
[\a] Dekle, Robert, Jonathan Eaton, and Samuel Kortum, “Unbalanced Trade,” American Economic Review, 2007, 97 (2), 351–355.
[\o] Dekle, Robert, Jonathan Eaton, and Samuel Kortum, “Global Rebalancing with Gravity: Measuring the Burden of Adjustment,” NBER Working Paper No. 13846, 2008.
[\a] Dix-Carneiro, Rafael, João Paulo Pessoa, Ricardo Reyes-Heroles, and Sharon Traiberman, “Globalization, Trade Imbalances, and Labor Market Adjustment,” Quarterly Journal of Economics, 2023, 138 (2), 1109–1171.
[\a] Eaton, Jonathan, Samuel Kortum, Brent Neiman, and John Romalis, “Trade and the Global Recession,” American Economic Review, 2016, 106 (11), 3401–3438.
[\o] Grossman, Gene M. and Elhanan Helpman, “Protection for Sale,” American Economic Review, 1994, 84 (4), 833–850.
[\a] Grossman, Gene M. and Elhanan Helpman, “Technology and Trade,” Chapter 25 in Handbook of International Economics Vol. 3, Elsevier, 1995, 1279–1337.
[\a] Grossman, Gene M., Elhanan Helpman, and Alejandro Sabal, “Optimal Resilience in Multi-Tier Supply Chains,” Quarterly Journal of Economics, 2024, 139 (4), 2377–2425.
[\o] LaBelle, Jesse, Inmaculada Martinez-Zarzoso, Ana Maria Santacreu, and Yoto V. Yotov, “Cross-Border Patenting, Globalization, and Development,” School of Economics Working Paper Series 2023-7, LeBow College of Business, Drexel University, December 2023.
[\a] Larch, Mario and Joschka Wanner, “Carbon Tariffs: An Analysis of the Trade, Welfare, and Emission Effects,” Journal of International Economics, 2017, 109 (C), 195–213.
[\o] Larch, Mario and Yoto V. Yotov, “General Equilibrium Trade Policy Analysis with Structural Gravity,” WTO Working Paper ERSD-2016-08, 2016.
[\o] Ravikumar, B., Ana Maria Santacreu, and Michael Sposi, “Capital Accumulation and Dynamic Gains from Trade,” Journal of International Economics, 2019, 119 (C), 93–110.
[\o] Reyes-Heroles, Ricardo, “The Role of Trade Costs in the Surge of Trade Imbalances,” Society for Economic Dynamics Meeting Papers, 2017.