EconPapers    
Economics at your fingertips  
 

Gravity Equations: Workhorse, Toolkit, and Cookbook

Keith Head and Thierry Mayer ()

No 9322, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This chapter focuses on the estimation and interpretation of gravity equations for bilateral trade. This necessarily involves a careful consideration of the theoretical underpinnings since it has become clear that naive approaches to estimation lead to biased and frequently misinterpreted results. There are now several theory-consistent estimation methods and we argue against sole reliance on any one method and instead advocate a toolkit approach. One estimator may be preferred for certain types of data or research questions but more often the methods should be used in concert to establish robustness. In recent years, estimation has become just a first step before a deeper analysis of the implications of the results, notably in terms of welfare. We try to facilitatediffusion of best-practice methods by illustrating their application in a step-by-step cookbook mode of exposition.

Keywords: bilateral; gravity; trade (search for similar items in EconPapers)
JEL-codes: F1 (search for similar items in EconPapers)
Date: 2013-01
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (62) Track citations by RSS feed

Downloads: (external link)
http://www.cepr.org/active/publications/discussion_papers/dp.php?dpno=9322 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Chapter: Gravity Equations: Workhorse,Toolkit, and Cookbook (2014) Downloads
Working Paper: Gravity Equations: Workhorse,Toolkit, and Cookbook (2013) Downloads
Working Paper: Gravity Equations: Workhorse, Toolkit, and Cookbook (2013) Downloads
Working Paper: Gravity Equations: Workhorse, Toolkit, and Cookbook (2013) Downloads
Working Paper: Gravity Equations: Workhorse, Toolkit, and Cookbook (2013) Downloads
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:9322

Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... ers/dp.php?dpno=9322

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().

 
Page updated 2019-04-09
Handle: RePEc:cpr:ceprdp:9322