Partial equilibrium trade policy analysis with structural gravity

In this chapter, you will learn:

- how the structural gravity model is derived
- where to find the data needed to estimate econometrically the structural gravity model
- where to find the data needed to estimate econometrically the structural gravity model
- what are the main measurement issues associated with gravity data
- what are the main econometric issues associated with the estimation of the structural gravity

model and how to address them - how to econometrically estimate the structural gravity model
- how to interpret and consistently aggregate gravity estimates.

After reading this chapter, with good econometric knowledge, and familiarity with STATA, you will

be able to estimate using STATA software a theoretically-consistent structural gravity model and

assess the effects of trade policies (and other determinants) on bilateral trade, while interpreting

the econometric results with key caveats in mind.

**| Read Chapter 1 |** ** Install application files |** ** Download application files |**