| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP13459 |
| DP13459 Aggregation and the Gravity Equation | |
| Stephen Redding; David Weinstein | |
| 发表日期 | 2019-01-16 |
| 出版年 | 2019 |
| 语种 | 英语 |
| 摘要 | One of the most successful empirical relationships in international trade is the gravity equation, which relates bilateral trade flows between an origin and destination to bilateral trade frictions, origin characteristics, and destination characteristics. A key decision for researchers in estimating this relationship is the level of aggregation, since the gravity equation is log linear, whereas aggregation involves summing the level rather than the log level of trade flows. In this paper, we derive an exact Jensen's inequality correction term for the gravity equation in a nested constant elasticity of substitution (CES) import demand system, such that a log-linear gravity equation holds exactly for each nest of this demand system. We use this result to decompose the effect of distance on bilateral trade in the aggregate gravity equation into the contribution of a number of different terms from sectoral gravity equations. We show that changes in sectoral composition make a quantitatively relevant contribution towards the aggregate effect of distance, particularly for more disaggregated definitions of sectors. |
| 主题 | International Trade and Regional Economics |
| 关键词 | Gravity equation Trade Aggregation |
| URL | https://cepr.org/publications/dp13459 |
| 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/542274 |
| 推荐引用方式 GB/T 7714 | Stephen Redding,David Weinstein. DP13459 Aggregation and the Gravity Equation. 2019. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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