We propose a new Quantity Dual Approach (QDA) to estimate the contribution of nontraded goods to Real Exchange Rate (RER) fluctuations. This method is immune to the bias resulting from the non-inclusion of some goods in CPI calculations and can be applied even in a stringent data environment...

We estimate a gravity model for 205 international trading partners over the period 1954-2014, by allowing for multiple layers of heterogeneity. The first layer of heterogeneity arises from the interactions between the gravity variables, and the second one comes from country pairs that differ in...