I need this to calculate trips, but this works. Clear explanation of the parameters, too. And TIL (things I learned): I never thought of using the distance as an explicit proxy for risks, Likewise, I like the incorporation of transaction costs in your explanation instead of a purely bare-bones explanation. I'm curious: could you incorporate some sort of iceberg model into the gravity model to assess risk? Or would that primarily just get at the amount of the perishable goods that actually make it to the destination, and additionally, wouldn't be useful to incorporate into the gravity model unlike say in (one of) Krugman's model of agglomeration and trade?
I am impressed by how many examples you can provide for each parameter of the model. Nice job man!
Thanks
Thank you for your explanation! Very helpful
I need this to calculate trips, but this works. Clear explanation of the parameters, too. And TIL (things I learned): I never thought of using the distance as an explicit proxy for risks, Likewise, I like the incorporation of transaction costs in your explanation instead of a purely bare-bones explanation.
I'm curious: could you incorporate some sort of iceberg model into the gravity model to assess risk? Or would that primarily just get at the amount of the perishable goods that actually make it to the destination, and additionally, wouldn't be useful to incorporate into the gravity model unlike say in (one of) Krugman's model of agglomeration and trade?
Belgium has 3 languages common. Dutch, french and german. It´s really just those that you can run into there..
Is the textbook Krugman's International Economics?
So what is the g model
G=GRAVITY AND GLOBE AND GREED..lol