Gravity without apologies: the science of elasticities, distance, and trade
Gravity as both fact and theory is one of the great success stories of recent research on international trade, and has featured prominently in the policy debate over Brexit. We first review the facts, noting the overwhelming evidence that trade tends to fall with distance. We then introduce some exp...
| Príomhchruthaitheoirí: | , , |
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| Formáid: | Journal article |
| Teanga: | English |
| Foilsithe / Cruthaithe: |
Oxford University Press
2020
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| _version_ | 1826307468050825216 |
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| author | Carrere, C Mrázová, M Neary, J |
| author_facet | Carrere, C Mrázová, M Neary, J |
| author_sort | Carrere, C |
| collection | OXFORD |
| description | Gravity as both fact and theory is one of the great success stories of recent research on international trade, and has featured prominently in the policy debate over Brexit. We first review the facts, noting the overwhelming evidence that trade tends to fall with distance. We then introduce some expository tools for understanding CES theories of gravity as a simple general-equilibrium system. Next, we point out some anomalies with the theory: mounting evidence against constant trade elasticities, and implausible predictions for bilateral trade balances. Finally, we sketch an approach based on subconvex gravity as a promising direction to resolving them.
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| first_indexed | 2024-03-07T07:03:34Z |
| format | Journal article |
| id | oxford-uuid:a6bb46ab-a575-4d95-a7a3-0e0f2b19c71c |
| institution | University of Oxford |
| language | English |
| last_indexed | 2024-03-07T07:03:34Z |
| publishDate | 2020 |
| publisher | Oxford University Press |
| record_format | dspace |
| spelling | oxford-uuid:a6bb46ab-a575-4d95-a7a3-0e0f2b19c71c2022-04-04T06:33:36ZGravity without apologies: the science of elasticities, distance, and tradeJournal articlehttp://purl.org/coar/resource_type/c_dcae04bcuuid:a6bb46ab-a575-4d95-a7a3-0e0f2b19c71cEnglishSymplectic ElementsOxford University Press2020Carrere, CMrázová, MNeary, JGravity as both fact and theory is one of the great success stories of recent research on international trade, and has featured prominently in the policy debate over Brexit. We first review the facts, noting the overwhelming evidence that trade tends to fall with distance. We then introduce some expository tools for understanding CES theories of gravity as a simple general-equilibrium system. Next, we point out some anomalies with the theory: mounting evidence against constant trade elasticities, and implausible predictions for bilateral trade balances. Finally, we sketch an approach based on subconvex gravity as a promising direction to resolving them. |
| spellingShingle | Carrere, C Mrázová, M Neary, J Gravity without apologies: the science of elasticities, distance, and trade |
| title | Gravity without apologies: the science of elasticities, distance, and trade |
| title_full | Gravity without apologies: the science of elasticities, distance, and trade |
| title_fullStr | Gravity without apologies: the science of elasticities, distance, and trade |
| title_full_unstemmed | Gravity without apologies: the science of elasticities, distance, and trade |
| title_short | Gravity without apologies: the science of elasticities, distance, and trade |
| title_sort | gravity without apologies the science of elasticities distance and trade |
| work_keys_str_mv | AT carrerec gravitywithoutapologiesthescienceofelasticitiesdistanceandtrade AT mrazovam gravitywithoutapologiesthescienceofelasticitiesdistanceandtrade AT nearyj gravitywithoutapologiesthescienceofelasticitiesdistanceandtrade |