Dynamic gravity: endogenous country size and asset accumulation
Abstract
Abstract Numerous gravity applications have resorted to panel data econometric techniques over the past decade. However, with the theory of gravity being so far only static, these estimations lack solid structural dynamic foundations. As a consequence, a consensus on a unified dynamic gravity estimation approach is yet to be reached. In this paper, (i) we build the theoretical foundations for a dynamic gravity model, (ii) we provide guidance for gravity‐type estimations with panel data and we consider applications, and (iii) we calibrate and simulate our model to compare its properties with those of the standard, static gravity setup.
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Olivero and Yotov (2012) experiment with 3-, 4- and 5-year intervals.
“For example, Baier and Bergstrand (2007) use five-year intervals, while Olivero and Yotov (2012) experiment with 3-, 4-and 5-year intervals.”
From Estimating the effects of trade agreements: Lessons from 60 years of methods and data (2024) · cites this paper as Olivero and Yotov (2012)
Cites
Initial conditions and moment restrictions in dynamic panel data models
Blundell, R., & Bond, S. (1998) · Journal of Econometrics · doi:10.1016/s0304-4076(98)00009-8 · Cited by 22,571 · see citing works
Estimating Trade Flows: Trading Partners and Trading Volumes <sup>*</sup>
Helpman, E., Melitz, M., & Rubinstein, Y. (2008) · Quarterly Journal of Economics · doi:10.1162/qjec.2008.123.2.441 · Cited by 2,436 · see citing works
The Long and Short of the Canada-U.S. Free Trade Agreement
Trefler, D. (2004) · American Economic Review · doi:10.1257/0002828042002633 · Cited by 1,071 · see citing works
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Estimating the effects of trade agreements: Lessons from 60 years of methods and data
Larch, M., & Yotov, Y. V. (2024) · The World Economy · doi:10.1111/twec.13569 · Cited by 56 · see citing works
Self-citation
- Authors
- Olivero, M. P., & Yotov, Y. V.
- Affiliations
- Drexel University (US)
- ORCID
- Yotov, Yoto V.
- Venue
- Canadian Journal of Economics/Revue canadienne d'économique
- Publisher
- Wiley
- Published
- 2012-02
- Volume
- 45
- Issue
- 1
- Pages
- 64-92
- ISSN
- 0008-4085 (ISSN-L)
- 1540-5982
- OpenAlex
- W2154626811
- Cited by
- 341
- References
- 3
- Citations by year
- 2026: 28 · 2025: 47 · 2024: 41 · 2023: 38 · 2022: 40 · 2021: 43 · 2020: 25 · 2019: 20 · 2018: 9 · 2017: 10 · 2016: 11 · 2015: 14 · 2014: 7 · 2013: 5 · 2012: 3
- FWCI
- 20.10
- Type
- journal article
- Language
- en
- Open access
- closed
- Locations
- Canadian Journal of Economics/Revue canadienne d économique (publishedVersion)
- Topics
- Social Sciences › Economics, Econometrics and Finance › General Economics, Econometrics and Finance › Global trade and economics
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Economic Growth and Productivity
- Social Sciences › Economics, Econometrics and Finance › Economics and Econometrics › Spatial and Panel Data Analysis
- Keywords
- dynamic gravity model, asset accumulation, trade theory, panel data estimation, model calibration, model simulation
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