The Distance Puzzle : On the Interpretation of the Distance Coefficient in Gravity Equations

Although globalization has diminished the importance of distance, empirical gravity models find little change in distance coefficients. We argue that changing distance costs are largely reflected in the constant term. A proportional fall in distance costs is consistent with constant distance coefficients

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Year of publication:	2008
Authors:	Buch, Claudia M. ; Kleinert, Jörn ; Toubal, Farid
Publisher:	[S.l.] : SSRN
Subject:	Gravitationsmodell \| Gravity model \| Geographische Entfernung \| Geographic distance \| Schätztheorie \| Estimation theory \| Internationale Wirtschaftsbeziehungen \| International economic relations \| Globalisierung \| Globalization \| Räumliche Verteilung \| Spatial distribution \| Deutschland \| Germany
Description of contents:	Abstract [papers.ssrn.com]