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Replication data for: Aggregation and the Gravity Equation

Version
1
Resource Type
Dataset
Creator
  • Redding, Stephen J.
  • Weinstein, David E.
Publication Date
2019-05-01
Description
  • Abstract

    One of the most successful empirical relationships in international trade is the gravity equation. A key decision for researchers in estimating this relationship is the level of aggregation, since the gravity equation is log linear, whereas aggregation involves summing the level rather than the log of trade. In this paper, we derive a Jensen's inequality correction term for nested constant elasticity of substitution preferences, such that a log-linear gravity equation holds exactly for each nest. We provide evidence that sectoral composition is quantitatively relevant for the aggregate effect of distance on international trade, particularly for more disaggregated definitions of sectors.
Availability
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Relations
  • Is supplement to
    DOI: 10.1257/pandp.20191006 (Text)
Publications
  • Redding, Stephen J., and David E. Weinstein. “Aggregation and the Gravity Equation.” AEA Papers and Proceedings 109 (May 2019): 450–55. https://doi.org/10.1257/pandp.20191006.
    • ID: 10.1257/pandp.20191006 (DOI)

Update Metadata: 2020-05-18 | Issue Number: 2 | Registration Date: 2019-12-07

Redding, Stephen J.; Weinstein, David E. (2019): Replication data for: Aggregation and the Gravity Equation. Version: 1. ICPSR - Interuniversity Consortium for Political and Social Research. Dataset. https://doi.org/10.3886/E116453V1