G2TT
来源类型Discussion paper
规范类型论文
来源IDDP11226
DP11226 Estimating Border Effects: The Impact of Spatial Aggregation
Dennis Novy; Cletus C. Coughlin
发表日期2016-04-12
出版年2016
语种英语
摘要Trade data are typically reported at the level of regions or countries and are therefore aggregates across space. In this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which initially symmetric micro regions are combined to form aggregated macro regions. We then apply the model to the large literature on border effects in domestic and international trade. Our theory shows that larger countries are systematically associated with smaller border effects. The reason is that due to spatial frictions, aggregation across space increases the relative cost of trading within borders. The cost of trading across borders therefore appears relatively smaller. This mechanism leads to border effect heterogeneity and is independent of multilateral resistance effects in general equilibrium. Even if no border frictions exist at the micro level, gravity estimation on aggregate data can still produce large border effects. We test our theory on domestic and international trade flows at the level of U.S. states. Our results confirm the model's predictions, with quantitatively large effects.
主题International Trade and Regional Economics
关键词Gravity Geography Borders Trade costs Heterogeneity Home bias Spatial attenuation Modifiable areal unit problem (maup)
URLhttps://cepr.org/publications/dp11226
来源智库Centre for Economic Policy Research (United Kingdom)
资源类型智库出版物
条目标识符http://119.78.100.153/handle/2XGU8XDN/540044
推荐引用方式
GB/T 7714
Dennis Novy,Cletus C. Coughlin. DP11226 Estimating Border Effects: The Impact of Spatial Aggregation. 2016.
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