Universal Gravity.

We study the theoretical properties and counterfactual predictions of a large class of general equilibrium trade and economic geography models. By combining aggregate factor supply and demand functions with market-clearing conditions, we prove that existence, uniqueness, and—given observed trade flo...

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Detalles Bibliográficos
Publicado en:Journal of Political Economy Vol. 128; no. 2; pp. 393 - 434
Autores principales: Allen, Treb, Arkolakis, Costas, Takahashi, Yuta
Formato: Artículo
Publicado: University of Chicago Press Feb2020
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Feb2020
      vid: 128
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      pub: University of Chicago Press
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        10.1086/704385
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      tig:
        atl: Universal Gravity.
      aug:
        au:
          Allen, Treb
          Arkolakis, Costas
          Takahashi, Yuta
        affil:
          Dartmouth College and National Bureau of Economic Research
          Yale University and National Bureau of Economic Research
          Hitotsubashi University
      su:
        China
        Economic models
        Supply & demand
        Relief models
        Gravity
        Demand function
      sug:
        subj:
          Economic models
          Supply & demand
          China
          Relief models
          Gravity
          Demand function
      ab: We study the theoretical properties and counterfactual predictions of a large class of general equilibrium trade and economic geography models. By combining aggregate factor supply and demand functions with market-clearing conditions, we prove that existence, uniqueness, and—given observed trade flows—the counterfactual predictions of any model within this class depend only on the demand and supply elasticities ("gravity constants"). Using a new "model-implied" instrumental variables approach, we estimate these gravity constants and use these estimates to compute the impact of a trade war between the United States and China.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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