gravityGE {gravityGE}R Documentation

Solves one sector Armington-CES gravity model with general equilibrium

Description

Solves one sector Armington-CES gravity model with general equilibrium

Usage

gravityGE(
  trade_data,
  theta = 4,
  beta_hat_name = NULL,
  a_hat_name = NULL,
  multiplicative = FALSE
)

Arguments

trade_data

A data frame that contains 'orig', 'dest', and 'flow' named columns, with additional variables as described below.

theta

Trade elasticity parameter (default = 4).

beta_hat_name

A character name in trade_data for the beta_hat variable. If NULL, a matrix of ones is used. Domestic trade ('orig' == 'dest') must have a value of 0.

a_hat_name

A character name in trade_data for the a_hat variable. If NULL, a matrix of ones is used. All values across 'orig' in a_hat must be the same.

multiplicative

Logical. If TRUE, the model is multiplicative. If FALSE, the model is additive. Default = FALSE. Additive is recommended when trade data is unbalanced.

Value

A list containing two data frames. A dyadic ('orig' and 'dest') data frame with the new trade flows, and a unidirectional ('orig') data frame with the welfare effects.

Examples


flows <- expand.grid(LETTERS, LETTERS)
flows$flow <- 1
names(flows)[1:2] <- c("orig", "dest")

# There should be no change in welfare (all ones)
out <- gravityGE::gravityGE(
  trade_data = flows,
  theta = 4,
  beta_hat_name = NULL,
  a_hat_name = NULL,
  multiplicative = FALSE
)



[Package gravityGE version 1.0.0 Index]