Chapter 2: Gravity, distance, and international trade
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The authors review and interpret the main theoretical developments in the gravity literature from its very early, a-theoretical applications to the latest structural contributions. They also discuss challenges and implement methods to estimate empirical gravity equations. They finish with a presentation and examples of numerical simulations with the structural gravity model. Throughout the analysis they attempt to emphasize the links and importance of transportation costs for the trade literature, and outline avenues where they believe interdisciplinary contributions between the international trade and transportation economics fields will be most valuable.

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