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Structural gravity equation with intensive and extensive margins

Matthieu Crozet () and Pamina Koenig ()
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Pamina Koenig: PSE - Paris School of Economics, Université Paris Est - PRES Université Paris-Est, PSE - Paris-Jourdan Sciences Economiques - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique

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Abstract: Recent trade models with heterogenous firms have changed the interpretation of gravity equations. Chaney (2008) shows that the effect of distance on the number of exporters and average exports depend on key parameters characterizing the elements of market structure. We use firm-level export data to estimate the structural parameters of Chaney's model. Controlling for the fixed costs of exporting, our estimated parameters match, for 28 out of 34 industries, the model's theoretical predictions. Our industry parameters allow us to evaluate separately the effect of transport costs and tariffs on trade, without having to resort to detailed data on trade frictions.

Keywords: Gravity; Trade (search for similar items in EconPapers)
Date: 2010-02
Note: View the original document on HAL open archive server: https://hal.archives-ouvertes.fr/hal-00610937
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Published in Canadian Journal of Economics / Revue Canadienne d'Économique, Wiley, 2010, 43 (1), pp.41-62. ⟨10.1111/j.1540-5982.2009.01563.x⟩

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Journal Article: Structural gravity equations with intensive and extensive margins (2010) Downloads
Journal Article: Structural gravity equations with intensive and extensive margins (2010) Downloads
Working Paper: Structural gravity equation with intensive and extensive margins (2010)
Working Paper: Structural gravity equation with intensive and extensive margins (2010)
Working Paper: Structural Gravity Equations with Intensive and Extensive Margins (2008) Downloads
Working Paper: Structural gravity equations with intensive and extensive margins (2007) Downloads
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Persistent link: https://EconPapers.repec.org/RePEc:hal:journl:hal-00610937

DOI: 10.1111/j.1540-5982.2009.01563.x

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