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this paper, we investigate the sensitivity of standard gravity estimation to spatial aggregation. We build a model in which … on border effects in domestic and international trade. Our theory shows that larger countries are systematically … associated with smaller border effects. The reason is that due to spatial frictions, aggregation across space increases the …
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We study the impact of regional and sectoral productivity changes on the U.S. economy. To that end, we consider an environment that captures the effects of interregional and intersectoral trade in propagating disaggregated productivity changes at the level of a sector in a given U.S. state to...
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We study the impact of intersectoral and interregional trade linkages in propagating disaggregated productivity changes to the rest of the economy. Using regional and industry data we obtain the aggregate, regional and sectoral elasticities of measured TFP, GDP, and employment to regional and...
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