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Introduction
The Basis for the Gravity Model: From Intuition to Theory
2.1 The Gravity Intuition
2.2 Problems with the Intuitive Gravity Model
2.3 “Theoretical” Gravity Models
Appendix 2.1: Derivation of the Anderson and Van Wincoop (2003)
Gravity Model
Estimating the Gravity Model
3.1 Estimating the Intuitive Gravity Model
3.2 Estimating the Theoretical Gravity Model
3.3 Dealing with Endogeneity
Alternative Gravity Model Estimators
4.1 The Poisson Pseudo-Maximum Likelihood Estimator
4.2 The Heckman Sample Selection Estimator
Conclusion: Using the Gravity Model for Policy Research
References
Services dataset (.dta file for Stata)
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