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Ulrich Schetter on X: "New WP "Gravity with History", w/ P. Egger, @Rfollmi & @torun_david. We introduce incumbency effects into a trade model & show that they i) explain up to 25% of countries' home shares & ii) yield an augmented ACR formula➡️~10% larger gains from trade 1/n https://t.co/s4Us8SOgvx https://t.co/Cy8aQG7Ew8" / X
New WP "Gravity with History", w/ P. Egger, @Rfollmi & @torun_david. We introduce incumbency effects into a trade model & show that they i) explain up to 25% of countries' home shares & ii) yield an augmented ACR formula➡️~10% larger gains from trade 1/n https://t.co/s4Us8SOgvx https://t.co/Cy8aQG7Ew8