Loungani, Prakash; Mody, Ashoka; Razin, Assaf - In: Scottish Journal of Political Economy 49 (2002) 5, pp. 526-43
Recent empirical analyses show that asset flows can be modelled by the same "gravity" equations that trade economists have used so successfully for the past few decades. This is something of a surprise. Trade economists do not yet have a unified theory of why gravity models should work--and the...