An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model

Often referred to as the workhorse of international trade analysis, the gravity model is one of the most popular and successful frameworks in economics. Hundreds of papers have used the gravity equation to study and quantify the effects of various determinants of international trade.

This book provides the most recent tools for analysis of trade policy using structural gravity models. It was written by experts who have contributed to the development of theoretical and empirical methods in the academic gravity literature and who have rich practical experience in the field. In particular, this publication explains how to conduct partial equilibrium estimations as well as general equilibrium analysis with structural gravity models, and contains practical guidance on how to apply these tools to concrete policy questions.

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This advanced guide is targeted at economists with advanced training and experience in applied research and analysis. In particular, on the economics side, advanced knowledge of international trade theory and policy is required, while on the empirical side, the prerequisite is familiarity with working with databases and with the use of Stata® (12 and above) software. Readers with limited experience with Stata may wish to first review the applications and complete the exercises proposed in the Practical Guide to Trade Policy Analysis.

Before extracting STATA do files and datasets, please read and follow the instructions contained in "How to use the application and exercise files."