Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/36493
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dc.contributor.authorRudolph, Stephanen_US
dc.date.accessioned2009-08-18en_US
dc.date.accessioned2010-07-15T09:40:59Z-
dc.date.available2010-07-15T09:40:59Z-
dc.date.issued2009en_US
dc.identifier.urihttp://hdl.handle.net/10419/36493-
dc.description.abstractGravity Equations are broadly used to estimate the impacts of trade impediments on trade flows. It is often stated that results are implausibly high. In theoretical foundations of the gravity equation, trade costs usually enter as icebergmelting-costs. This paper offers an alternative approach to model trade costs. From a microeconomic point of view, trade costs should depend on trade input prices and - which is new - the underlying trade volume. If trade costs are determined by the trade volume, and average trade costs are falling with the trade volume (e.g. due to economies of scale in the trade sector), empirical results from gravity equations are likely to be biased.en_US
dc.language.isoengen_US
dc.publisher|aUniv. of Technology, Fac. of Business Management and Economics |cDresdenen_US
dc.relation.ispartofseries|aDresden discussion paper series in economics |x11/09en_US
dc.subject.jelF10en_US
dc.subject.jelC51en_US
dc.subject.ddc330en_US
dc.subject.keywordgravity equationen_US
dc.subject.keywordtrade costsen_US
dc.subject.keywordestimation biasen_US
dc.titleThe gravity equation with micro-founded trade costsen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn607244100en_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-
dc.identifier.repecRePEc:zbw:tuddps:1109-

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