Hogrefe, Jan; Jung, Benjamin; Kohler, Wilhelm K. - Zentrum für Europäische Wirtschaftsforschung (ZEW) - 2010
We know that euro-area member countries have absorbed asymmetric shocks in ways that are inconsistent with a common nominal anchor. Based on a reformulation of the gravity model that allows for such bilateral misalignment, we disentangle the conventional trade cost channel and trade effects...
