This paper studies the effect of the diesel price on trade flows across space within the United States. Using a structural gravity model with spatially autocorrelated flows applied to the inter-state trade, we find that an increase in diesel price reduces the volume of trade and that this effect...

The difference-in-difference (DID) framework is now a well-accepted method in quasi-experimental research. However, DID does not consider treatment-induced changes to a network linking treated and control units. Our instrumental variable network DID methodology controls first for the endogeneity...