Estimating Gravity Equations: Theory Implications, Econometric Developments, and Practical Recommendations

B-Tier
Journal: Review of International Economics
Year: 2025
Volume: 33
Issue: 5
Pages: 1066-1092

Score contribution per author:

0.670 = (α=2.01 / 3 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We trace the developments in the empirical trade literature to make fifteen recommendations for estimating gravity equations, which are structured in three categories: data, estimating equation, and heterogeneity. We also offer practical tips and identify areas where further research is needed. Based on these recommendations, we specify a comprehensive estimating model, which can serve as a benchmark for gravity estimations even when it is not possible to implement all of our recommendations. The proposed methods should be useful for gravity estimations beyond international trade, e.g., migration, foreign investment, cross‐border patenting, and other flows.

Technical Details

RePEc Handle
repec:bla:reviec:v:33:y:2025:i:5:p:1066-1092
Journal Field
International
Author Count
3
Added to Database
2026-01-25