Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/38920 
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dc.contributor.authorNovy, Dennisen
dc.date.accessioned2010-04-26-
dc.date.accessioned2010-08-18T11:18:13Z-
dc.date.available2010-08-18T11:18:13Z-
dc.date.issued2010-
dc.identifier.urihttp://hdl.handle.net/10419/38920-
dc.description.abstractThis paper derives a micro-founded gravity equation in general equilibrium based on a translog demand system that allows for endogenous markups and rich substitution patterns across goods. In contrast to standard CES-based gravity equations, trade is more sensitive to trade costs if the exporting country only provides a small share of the destination country's imports. As a result, trade costs have a heterogeneous impact across country pairs, with some trade flows predicted to be zero. I test the translog gravity equation and find strong empirical support in its favor. In an application to the currency union effect, I find that a currency union is only associated with substantially higher bilateral trade if the exporting country provides a small share of the destination country's imports. For other pairs, the currency union effect is modest or indistinguishable from zero.en
dc.language.isoengen
dc.publisher|aCenter for Economic Studies and ifo Institute (CESifo) |cMunichen
dc.relation.ispartofseries|aCESifo Working Paper |x3008en
dc.subject.jelF11en
dc.subject.jelF12en
dc.subject.jelF15en
dc.subject.ddc330en
dc.subject.keywordtranslogen
dc.subject.keywordtrade costsen
dc.subject.keywordgravityen
dc.subject.keywordcurrency unionen
dc.subject.keywordmonopolistic competitionen
dc.subject.keywordtrade cost elasticityen
dc.subject.keywordheterogeneityen
dc.subject.keywordzero tradeen
dc.subject.stwAußenwirtschaften
dc.subject.stwKostenen
dc.subject.stwGravitationsmodellen
dc.subject.stwMikroökonomische Fundierungen
dc.subject.stwMonopolistischer Wettbewerben
dc.subject.stwAllgemeines Gleichgewichten
dc.subject.stwWährungsunionen
dc.subject.stwSchätzungen
dc.subject.stwOECD-Staatenen
dc.titleInternational trade and monopolistic competition without CES: Estimating translog gravity-
dc.typeWorking Paperen
dc.identifier.ppn62464605Xen
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen

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