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Article: Researchers from University of Notre Dame detail findings in international economics.
- Article from:
- Economics Week
- Article date:
- March 13, 2009
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"Using a Taylor-series expansion, we solve for a simple reduced-form gravity equation revealing a transparent theoretical relationship among bilateral trade flows, incomes, and trade costs, based upon the model in Anderson and van Wincoop [Anderson, James E., and van Wincoop, Eric. ''Gravity with Gravitas: A Solution to the Border Puzzle.'' American Economic Review 93, no. 1 (March 2003): 170-192.]," scientists in the United States report.
"Monte Carlo results support that virtually identical coefficient estimates are obtained easily by estimating the reduced-form gravity equation including theoretically-motivated exogenous multilateral resistance terms," wrote ...