Journal article
Short run gravity
Journal of international economics, v 126, p103341
01 Sep 2020
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
Short run gravity is a model of bilateral export trade serviced by fixed bilateral capacities (marketing capital) along with labor that is frictionlessly allocated across destinations. Long run efficient capacity allocation yields long run gravity, equivalent to the standard structural gravity model. The estimated short run trade elasticity is about 1/4 the long run trade elasticity. Capacity reallocation raised world manufacturing trade 75% in the globalization era, 1988-2006 - a solution to the 'missing globalization puzzle'. Counter-factual long run equilibrium allocation of marketing capital implies world real income gains ranging from over 2% in 1989 to under 1% in 2006. (C) 2020 Elsevier B.V. All rights reserved.
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Details
- Title
- Short run gravity
- Creators
- James E. Anderson - Boston Coll, Dept Econ, Maloney Hall,Room 389,140 Commonwealth Ave, Chestnut Hill, MA 02467 USAYoto Yotov - Drexel University
- Publication Details
- Journal of international economics, v 126, p103341
- Publisher
- Elsevier
- Number of pages
- 21
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:000577810700008
- Scopus ID
- 2-s2.0-85085654071
- Other Identifier
- 991021807113504721
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- Collaboration types
- Domestic collaboration
- Web of Science research areas
- Economics