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The Gravity Model

  • James E. Anderson

The gravity model in economics was until relatively recently an intellectual orphan, unconnected to the rich family of economic theory. This review is a tale of the orphan's reunion with its heritage and the benefits that have flowed from it. Gravity has long been one of the most successful empirical models in economics. Incorporating the theoretical foundations of gravity into recent practice has led to a richer and more accurate estimation and interpretation of the spatial relations described by gravity. Recent developments are reviewed here and suggestions are made for promising future research.

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Paper provided by National Bureau of Economic Research, Inc in its series NBER Working Papers with number 16576.

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Date of creation: Dec 2010
Date of revision:
Publication status: published as James E. Anderson, 2011. "The Gravity Model," Annual Review of Economics, Annual Reviews, vol. 3(1), pages 133-160, 09.
Handle: RePEc:nbr:nberwo:16576
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