NATIONAL BUREAU OF ECONOMIC RESEARCH
NATIONAL BUREAU OF ECONOMIC RESEARCH
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Grounded by Gravity: A Well-Behaved Trade Model with Industry-Level Economies of Scale

Konstantin Kucheryavyy, Gary Lyn, Andrés Rodríguez-Clare

NBER Working Paper No. 22484
Issued in August 2016

---- Acknowledgments ----

We thank James Anderson, Costas Arkolakis, Gaurab Aryal, Lorenzo Caliendo, Arnaud Costinot, Richard Cottle, Svetlana Demidova, Dave Donaldson, Jonathan Eaton, Gene Grossman, Nail Kashaev, Tim Kehoe, Hideo Konishi, Sam Kortum, Beresford Parlett, Donald Richards, Steve Redding, Michael Tsatsomeros, Guang Yang, Xi Yang, and Stephen Yeaple for valuable discussions, and Kala Krishna for pointing us back to perfect competition. We thank Mauricio Ulate and Piyush Panigrahi for valuable research assistance. All errors are, of course, our own. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.

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