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ge_gravity2: A command for solving universal gravity models
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DOI：10.1177/1536867x251398335.png)
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Abstract
En 中文
<jats:title>Abstract.</jats:title>
<jats:p>
In this article, we describe an algorithm for computing counterfactual trade flows, prices, output, and welfare in a large class of general equilibrium trade models. We introduce a command called
<jats:monospace>ge_gravity2</jats:monospace>
, which allows users to perform these computations in Stata. This command extends the existing
<jats:monospace>ge_gravity</jats:monospace>
command by allowing users to compute the general equilibrium effects of changes in trade policy in positive supply elasticity models. It can be used to solve any model that falls into the class of universal gravity models as defined by
<jats:xref ref-type="bibr">Allen, Arkolakis, and Takahashi (2020</jats:xref>
,
<jats:italic toggle="yes">Journal of Political Economy</jats:italic>
128: 393-433).
</jats:p>
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