Behrens, Kristian; Mion, Giordano; Murata, Yasusada; … - Institute for the Study of Labor (IZA) - 2008
We develop a new general equilibrium model of trade with heterogeneous firms, variable demand elasticities and … Canada-U.S. interregional trade data, we first estimate a system of theory-based gravity equations under the general … equilibrium constraints generated by the model. Doing so allows us to measure 'border effects' and to decompose them into a 'pure …