NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH

Gold Standard Gravity

James E. Anderson, Yoto V. Yotov

NBER Working Paper No. 17835
Issued in February 2012
NBER Program(s):   ITI

This paper provides striking confirmation of the restrictions of the structural gravity model of trade. Structural forces predicted by theory explain 95% of the variation of the fixed effects used to control for them in the recent gravity literature, fixed effects that in principle could reflect other forces. This validation opens avenues to inferring unobserved sectoral activity and multilateral resistance variables by equating fixed effects with structural gravity counterparts. Our findings also provide important validation of a host of general equilibrium comparative static exercises based on the structural gravity model.

download in pdf format
   (349 K)

email paper

This paper is available as PDF (349 K) or via email.

Machine-readable bibliographic record - MARC, RIS, BibTeX

Document Object Identifier (DOI): 10.3386/w17835

Users who downloaded this paper also downloaded these:
Anderson, Vesselovsky, and Yotov w18807 Gravity, Scale and Exchange Rates
Anderson and Yotov w17003 Terms of Trade and Global Efficiency Effects of Free Trade Agreements, 1990-2002
Anderson and Yotov w16301 Specialization: Pro- and Anti-globalizing, 1990-2002
Eaton, Kortum, and Sotelo w17864 International Trade: Linking Micro and Macro
Anderson w16576 The Gravity Model
 
Publications
Activities
Meetings
NBER Videos
Data
People
About

Support
National Bureau of Economic Research, 1050 Massachusetts Ave., Cambridge, MA 02138; 617-868-3900; email: info@nber.org

Contact Us