ge_gravity2: a command for solving universal gravity models (2404.09180v2)
Abstract: We describe an algorithm for computing counterfactual trade flows, prices, output, and welfare in a large class of general equilibrium trade models. We introduce a command called ge_gravity2 that allows users to perform these computations in Stata. This command extends the existing ge_gravity command by allowing users to compute the general equilibrium effects of changes in trade policy in positive supply elasticity models. It can be used to solve any model that falls into the class of universal gravity models as defined by Allen, Arkolakis, and Takahashi [Universal Gravity, Journal of Political Economy, 128(2), 2020, 393-433].
- Trade and the Topography of the Spatial Economy. The Quarterly Journal of Economics 129(3): 1085–1140.
- Universal Gravity. Journal of Political Economy 128(2): 393–433.
- General equilibrium analysis of the Eaton-Kortum model of international trade. Journal of Monetary Economics 54(6): 1726–1768.
- Anderson, J. 1979. A Theoretical Foundation for the Gravity Equation. American Economic Review 69(1): 106–16.
- GEPPML: General equilibrium analysis with PPML. The World Economy 41(10): 2750–2782.
- Gravity with Gravitas: A Solution to the Border Puzzle. American Economic Review 93(1): 170–192.
- Armington, P. S. 1969. A Theory of Demand for Products Distinguished by Place of Production. IMF Staff Papers 159–178.
- On the widely differing effects of free trade agreements: Lessons from twenty years of trade integration. Journal of International Economics 116: 206–226.
- Autarky in Franco’s Spain: the costs of a closed economy. Economic History Review 76: 1259–1280.
- Â . 2024. GE_GRAVITY2: Stata module to solve a gravity model within the universal gravity class. Statistical Software Components, Boston College Department of Economics. URL https://ideas.repec.org/c/boc/bocode/s459317.html.
- Global rebalancing with gravity: Measuring the burden of adjustment. IMF Staff papers 55(3): 511–540.
- Trade and Domestic Production Networks. Review of Economic Studies 88(2): 643–668.
- Technology, Geography, and Trade. Econometrica 70(5): 1741–1779.
- Firm entry, trade, and welfare in Zipf’s world. Journal of International Economics 89(2): 283–296.
- Welfare effects of Balkan trade liberalization through the lens of structural gravity. Mimeo.
- Krugman, P. 1980. Scale Economies, Product Differentiation, and the Pattern of Trade. American Economic Review 70(5): 950–959.
- Melitz, M. J. 2003. The Impact of Trade on Intra-Industry Reallocations and Aggregate Industry Productivity. Econometrica 71(6): 1695–1725.
- Redding, S. J. 2016. Goods trade, factor mobility and welfare. Journal of International Economics 101: 148–167.
- The Costs of Remoteness: Evidence from German Division and Reunification. American Economic Review 98(5): 1766–97.
- Trade and Domestic Production Networks. NBER Working Papers 25120, National Bureau of Economic Research, Inc.
- Zylkin, T. 2019. GE_GRAVITY: Stata module to solve a simple general equilibrium one sector Armington-CES trade model. Statistical Software Components, Boston College Department of Economics. URL https://ideas.repec.org/c/boc/bocode/s458678.html.
Sponsor
Paper Prompts
Sign up for free to create and run prompts on this paper using GPT-5.
Top Community Prompts
Collections
Sign up for free to add this paper to one or more collections.