@article{Bekkers:332379,
      recid = {332379},
      author = {Bekkers, Eddy},
      title = {Estimating Trade Elasticities and Asymmetric Trade Costs  under Firm Heterogeneity},
      address = {2013},
      pages = {13},
      year = {2013},
      note = {Presented at the 16th Annual Conference on Global Economic  Analysis, Shanghai, China},
      abstract = {Taking Örst order Taylor approximations an empirical  strategy is proposed to estimate the trade elasticity using  data on import shares, distance and gross output. The  strategy is proposed for a Melitz economy. It consists of  deriving two gravity type equations, a conventional gravity  equation and a new gravity equation based upon the weighted  sums of the import shares across trading partners. The new  gravity equation follows from general equilibrium  conditions on input cost adjustment. Using the estimates  from the conventional gravity equation in the new gravity  equation enables identiÖcation of the trade elasticity  using only distance data. Employing the NBER-UN world trade  data (Feenstra, 2005) for the largest 48 economies in the  world at the aggregate level a trade elasticity of around  two is found.},
      url = {http://ageconsearch.umn.edu/record/332379},
}