Journal article
The evolution of structural gravity: The workhorse model of trade
Contemporary economic policy, v 42(4), pp 578-603
01 Oct 2024
Featured in Collection : UN Sustainable Development Goals @ Drexel
Abstract
The gravity model is the workhorse model of trade. Yet, many economists still view gravity as a reduced-form estimating equation and apply it without guidance from theory, while others are skeptical about its usefulness for counterfactual projections. This paper offers a historical overview of the evolution of gravity, from an a-theoretical application to an estimating computable general equilibrium model, which can be nested in more complex frameworks. Along the way, I address some misconceptions about gravity, summarize the current recommendations for gravity estimations, highlight properties that have made gravity so successful, and review the latest contributions to the related literature.
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Details
- Title
- The evolution of structural gravity: The workhorse model of trade
- Creators
- Yoto V. Yotov - Drexel University, Economics (School of Economics)
- Publication Details
- Contemporary economic policy, v 42(4), pp 578-603
- Publisher
- Wiley
- Number of pages
- 26
- Resource Type
- Journal article
- Language
- English
- Academic Unit
- Economics (School of Economics)
- Web of Science ID
- WOS:001288201400001
- Scopus ID
- 2-s2.0-85200775548
- Other Identifier
- 991021897246204721
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- Web of Science research areas
- Economics
- Public Administration