Trade frictions and welfare in the gravity model: how much of the iceberg melts?
研究了结构引力模型在一般均衡下的隐含含义，发现该模型预测的消费者与生产者价格差异过大、消费者价格指数地理分布过度变异，且至少50%的产出用于克服贸易摩擦。
Abstract. A key element missing from the structural gravity literature is an examination of the implied general equilibrium. By design the gravity equation is adept at predicting bilateral trade flows. To make inferences beyond trade flows, however, the theoretic models should be consistent with other observables. Structural econometric estimates from Anderson and van Wincoop (2003) allow us to evaluate their proposed general equilibrium along several dimensions. We find that their gravity model predicts too large a difference between consumer and producer prices; excessive variation in the geographic distribution of consumer price indices; and an exceptionally large portion of output devoted to overcoming trade frictions. Under plausible parameterizations of the model at least 50% of output ‘melts’ in transit.