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Monday, May 11, 2020 | History

2 edition of On theories explaining the success of the gravity equation found in the catalog.

On theories explaining the success of the gravity equation

Simon J. Evenett

On theories explaining the success of the gravity equation

by Simon J. Evenett

  • 150 Want to read
  • 18 Currently reading

Published by National Bureau of Economic Research in Cambridge, MA .
Written in English

    Subjects:
  • International trade -- Econometric models.,
  • Product differentiation -- Econometric models.

  • Edition Notes

    Other titlesTheories explaining the success of the gravity equation
    StatementSimon J. Evenett, Wolfgang Keller.
    SeriesNBER working paper series -- working paper 6529, Working paper series (National Bureau of Economic Research) -- working paper no. 6529.
    ContributionsKeller, Wolfgang, 1964-, National Bureau of Economic Research.
    Classifications
    LC ClassificationsHB1 .W654 no. 6529
    The Physical Object
    Pagination30, [20] p. :
    Number of Pages30
    ID Numbers
    Open LibraryOL22403353M

    Gravity (from Latin gravitas, meaning 'weight'), or gravitation, is a natural phenomenon by which all things with mass or energy—including planets, stars, galaxies, and even light —are brought toward (or gravitate toward) one another. On Earth, gravity gives weight to physical objects, and the Moon's gravity causes the ocean gravitational attraction of the original gaseous matter. This article aims to explain trade flows in terms of the gravity equation (GE). The reason for focusing on GE is twofold. The first is that GE, unlike other frameworks, has had great empirical success in explaining bilateral trade flows. For a long time, however, GE was a child without a father in the sense that it was thought to have no theoretical by:

    Hundreds of papers have used the gravity equation to study and quantify the effects of various determinants of international trade. There are at least five compelling arguments that, in combination, may explain the remarkable success and popularity of the gravity model. •• First, the gravity model of trade is very intuitive. Using the. The new trade theories can explain intra-industry trade while the orthodox theory cannot. it is claimed that the new theories of international trade can accommodate increasing returns to scale while the orthodox theory cannot. Empirical tests using the gravity model have till date enjoyed stupendous success. The gravity equation worked.

    Books at Amazon. The Books homepage helps you explore Earth's Biggest Bookstore without ever leaving the comfort of your couch. Here you'll find current best sellers in books, new releases in books, deals in books, Kindle eBooks, Audible audiobooks, and so much more. In , Hendrik Lorentz tried to explain gravity on the basis of his Lorentz ether theory and the Maxwell equations. He assumed, like Ottaviano Fabrizio Mossotti and Johann Karl Friedrich Zöllner, that the attraction of opposite charged particles is stronger than the repulsion of equal charged particles.


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On theories explaining the success of the gravity equation by Simon J. Evenett Download PDF EPUB FB2

Abstract. We examine whether two important theories of trade, the Heckscher‐Ohlin theory and the increasing returns theory, can account for the empirical success of the so‐called gravity equation.

Since versions of both theories can predict this equation, we tackle the model identification problem by conditioning bilateral trade relations on factor endowment differences and on the share of intraindustry Cited by: NBER Program(s):International Trade and Investment We analyze two main theories of international trade, the Heckscher-Ohlin theory and the Increasing Returns trade theory, by examining whether they can account for the empirical success of the so-called Gravity by: gravity equation model is a potential candidate to explain the success of the gravity equation.1 Equation (1) is very general since its derivation does not require assumptions on factor price equalization, differences in factor endow-ments across countries, factor intensities in.

We examine whether two important theories of trade, the Heckscher-Ohlin theory and the Increasing Returns theory, can account for the empirical success of the so-called gravity equation. Since versions of both theories can predict this equation, we tackle the model identification problem by conditioning bilateral trade relations on factor endowment differences and on the share of intra.

Abstract. We analyze two main theories of international trade, the Heckscher-Ohlin theory and the Increasing Returns trade theory, by examining whether they can account for the empirical success of the so-called Gravity by: On Theories Explaining the Success of the Gravity Equation Article (PDF Available) in Journal of Political Economy February with Reads How we measure 'reads'.

On Theories Explaining the Success of the Gravity Equation Article (PDF Available) in Journal of Political Economy (2) February with Reads How we measure 'reads'.

We conclude that the monopolistic competition theory is more likely to account for the gravity equation's success, especially in explaining trade among industrial nations.

Examining the accuracy of the monopolistic competition theory's predictions for import volumes, we assess whether this theory accounts for the empirical success of the gravity equation.

We examine whether two important theories of trade, the Heckscher-Ohlin theory and the increasing returns theory, can account for the empirical success of the so-called gravity : Simon J.

Evenett and Wolfgang Keller. On Theories Explaining the Success of Gra vit y Equation Simon J. Ev enett y Rutgers Univ ersit y and The Bro okings Institution W olfgang Keller z of Wisconsin and NBER Ma y Abstract W e analyze t w o main theories of in ternational trade, the Hec ksc her-Ohlin theory and the Increasing Returns trade theory,b y examining whether they can.

Abstract. We examine whether two important theories of trade, the Heckscher-Ohlin theory and the increasing returns theory, can account for the empirical success of the so-called gravity equation.

Since versions of both theories can predict this equation, we tackle the model identification problem by conditioning bilateral trade relations on factor endowment differences and on the share of intraindustry.

We examine whether two important theories of trade, the Heckscher- Ohlin theory and the increasing returns theory, can account for the empirical success of the so-called gravity by: On Theories Explaining the Success of the Gravity Equation.

the Heckscher-Ohlin theory and the Increasing Returns trade theory, by examining whether they can account for the empirical success of the so-called Gravity Equation.

Since versions of both models can generate this prediction, we tackle the model identification problem by Author: Simon J. Evenett and Wolfgang Keller. The importance of countries’ economic size in explaining trade patterns was recognized in an equation first proposed by Tinbergen ().

Tinbergen proposed that the volume of trade between countries would be similar to the force of gravity between objects. Suppose that two objects each have massM 1 andM 2, and they are located distanced apart.

Abstract. The gravity equation explains the amount of trade between countries based on their economic sizes and the distance between them.

While it has been in use since the s, its theoretical foundation has been known for a much shorter period, and recent years have seen an large amount of research on its derivation and estimation. This work investigates alternative theories of gravity, the solutions to their field equations and the constraints that can be imposed upon them from observation and experiment.

Specifically, we consider the cosmologies and spherically symmetric so-lutions that can be expected to result from scalar-tensor and fourth-order theories of by: On Theories Explaining the Success of the Gravity Equation. Simon Evenett and Wolfgang Keller (). Journal of Political Economy,vol.issue 2, Abstract: We examine whether two important theories of trade, the Heckscher-Ohlin theory and the increasing returns theory, can account for the empirical success of the so-called gravity by: Theories explaining the success of the gravity equation: Responsibility: Simon J.

Evenett, Wolfgang Keller. Abstract: We analyze two main theories of international trade, the Heckscher-Ohlin theory and the Increasing Returns trade theory, by examining whether they can account for the empirical success of the so-called Gravity Equation.

Gravity for Dummies and Dummies for Gravity Equations Richard Baldwin, Daria Taglioni. NBER Working Paper No. Issued in September NBER Program(s):International Finance and Macroeconomics, International Trade and Investment This paper provides a minimalist derivation of the gravity equation and uses it to identify three common errors in the literature, what we call the gold, Cited by:.

The empirical evidence for the gravity equation in international trade is strong. Both the role of distance and economic size are remarkably stable over time, across different countries, and using various econometric methods. Disdier and Head () use a meta-analysis of 1,In fact, this ambiguity reflects the success of the gravity model in economics.

Although the model is probably best known in the context of international trade and capital flows between countries, it has also been successfully applied to describe how consumers flow between different shopping malls, patients between hospitals and much more.Gravity theory by David W.

Allen. One of the biggest questions that has puzzled mankind throughout the ages is how gravity works. This new gravitational theory not only explains how gravity works, but shows how errors can arise in determining the positions of space probes, in determining the mass of the earth and other planets and in determining the value of G, the universal gravitational.