Presbitero wrote in a blog. The role of economic size as well as geographical distance that is predicted by the gravity model of international trade cannot be wished away, but there is a growing ...

Abstract: This paper uses a 42-country model of production and trade to assess the implications of eliminating current account imbalances for relative wages, relative GDPs, real wages, and real ...

We thus began our recent research by examining this theory empirically. We use a standard “gravity” model of trade, which predicts that trade volumes between two countries will be a function of their ...