In this paper, we employ machine learning techniques to capture heterogeneity in free trade agreements. The tools of machine learning allow us to quantify several features of trade agreements, including volume, comprehensiveness, and legal enforceability. Combining machine learning results with...

Gravity equations have been used for more than 50 years to estimate ex post the partial effects of trade costs on international trade flows, and the well-known - and traditionally presumed exogenous - "trade-cost elasticity" plays a central role in computing general equilibrium trade-flow and...

Gravity equations have been used for more than 50 years to estimate ex post the partial effects of trade costs on international trade flows, and the well-known -- and traditionally presumed exogenous -- “trade-cost elasticity” plays a central role in computing general equilibrium trade-flow...