Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/38920
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dc.contributor.authorNovy, Dennisen_US
dc.date.accessioned2010-04-26en_US
dc.date.accessioned2010-08-18T11:18:13Z-
dc.date.available2010-08-18T11:18:13Z-
dc.date.issued2010en_US
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_US
dc.language.isoengen_US
dc.publisher|aCenter for Economic Studies and Ifo Institute (CESifo) |cMunichen_US
dc.relation.ispartofseries|aCESifo working paper Trade Policy |x3008en_US
dc.subject.jelF11en_US
dc.subject.jelF12en_US
dc.subject.jelF15en_US
dc.subject.ddc330en_US
dc.subject.keywordtranslogen_US
dc.subject.keywordtrade costsen_US
dc.subject.keywordgravityen_US
dc.subject.keywordcurrency unionen_US
dc.subject.keywordmonopolistic competitionen_US
dc.subject.keywordtrade cost elasticityen_US
dc.subject.keywordheterogeneityen_US
dc.subject.keywordzero tradeen_US
dc.subject.stwAußenwirtschaften_US
dc.subject.stwKostenen_US
dc.subject.stwGravitationsmodellen_US
dc.subject.stwMikroökonomische Fundierungen_US
dc.subject.stwMonopolistischer Wettbewerben_US
dc.subject.stwAllgemeines Gleichgewichten_US
dc.subject.stwWährungsunionen_US
dc.subject.stwSchätzungen_US
dc.subject.stwOECD-Staatenen_US
dc.titleInternational trade and monopolistic competition without CES: Estimating translog gravityen_US
dc.type|aWorking Paperen_US
dc.identifier.ppn62464605Xen_US
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungen-

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