Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/155599 
Year of Publication: 
2017
Series/Report no.: 
CESifo Working Paper No. 6357
Publisher: 
Center for Economic Studies and ifo Institute (CESifo), Munich
Abstract: 
We review and interpret the main theoretical developments in the gravity literature from its very early, a-theoretical applications to the latest structural contributions. We also discuss challenges and implement methods to estimate empirical gravity equations. We finish with a presentation and examples of numerical simulations with the structural gravity model. Throughout the analysis we attempt to emphasize the links and importance of transportation costs for the trade literature and we outline avenues where we believe interdisciplinary contributions between the international trade and transportation economics fields will be most valuable.
Subjects: 
structural gravity
estimation
simulation
transportation costs
JEL: 
F10
F43
O40
Document Type: 
Working Paper
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