UC Davis Econ in the News
March 20th, 2008Davis Professor Paul Bergin’s (with Fed economist Reuven Glick) paper (pdf) on trade costs and oil prices is discussed at econbrowser.
My favorite line in the abstract: “This time-variation [in price dispersion, a measure of trade "thickness"] is difficult to explain in terms of the standard gravity equation variables common in the literature, as these tend not to vary much over time.” The gravity model estimates trade costs using distance between countries (and some other stuff)…
March 20th, 2008 at 1:01 pm
What?
March 20th, 2008 at 4:29 pm
gravity equation variables “tend not to vary much over time”
March 20th, 2008 at 4:30 pm
Its called the gravity model because it most important variable is distance.
March 20th, 2008 at 4:30 pm
They made a funny!
March 21st, 2008 at 12:06 pm
Oooook….