@techreport{Novy2011Gravity,
abstract = {Barriers to international trade are known to be large but due to data limitations it is hard to measure them directly for a large number of countries over many years. To address this problem I derive a micro-founded measure of bilateral trade costs that indirectly infers trade frictions from observable trade data. I show that this trade cost measure is consistent with a broad range of leading trade theories including Ricardian and heterogeneous firms models. In an application I show that U.S. trade costs with major trading partners declined on average by about 40 percent between 1970 and 2000, with Mexico and Canada experiencing the biggest reductions.},
address = {M\"{u}nchen},
author = {Dennis Novy},
copyright = {http://www.econstor.eu/dspace/Nutzungsbedingungen},
keywords = {F10; F15; 330; trade costs; gravity; multilateral resistance; Ricardian trade; heterogeneous firms},
language = {eng},
number = {3616},
publisher = {CESifo},
title = {Gravity redux: Measuring international trade costs with panel data},
type = {CESifo working paper: Trade Policy},
url = {http://hdl.handle.net/10419/52476},
year = {2011}
}
