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Microsoft Word - cpbdoc194.doc
... using a gravity approach for 16 oecd countries between 1960 and 1988. they use gdp, transport costs and import tariffs as explanatory variables in the gravity equation. they conclude ... taylor (1981) estimation. interestingly, baier and bergstrand (2001) use a specification of the gravity equation in differences for various reasons. they have several reasons to use this specification. first ...
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gravity-gravitas-comment.pdf
... can subsequently be used to substitute for the multilateral resistances in the gravity equation. the resulting transformed gravity equation is log-linear and can be estimated using standard econometric ... to estimating the parameters of the gravity equation. in contrast to the reduced form gravity equation based on the exact solution, the bvo gravity equation does not suffer from endogeneity ...
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