?url_ver=Z39.88-2004&rft_val_fmt=info%3Aofi%2Ffmt%3Akev%3Amtx%3Adc&rft.relation=http%3A%2F%2Feprints.imtlucca.it%2F1461%2F&rft.title=Stochastic+Trade+Networks&rft.creator=Riccaboni%2C+Massimo&rft.creator=Schiavo%2C+Stefano&rft.subject=HB+Economic+Theory&rft.subject=HF+Commerce&rft.description=This+paper+develops+a+simple+network+model+to+describe+the+dynamic+of+the+intensive+and+extensive+margin+of+international+trade+flows.+The+result+is+achieved+by+means+of+the+combination+of+two+mechanisms+of+proportional%0D%0Agrowth%3A+the+first+(discrete)+determines+the+formation+of+trade+links%2C+the+second+(continuous)+governs+trade+intensity.+We+show+that+our+setup+is+able+to+simultaneously+match+a+large+number+of+empirical+regularities%2C+such+as+the%0D%0Afraction+of+zero+trade+flows+across+pairs+of+countries+or+the+high+concentration+of+trade+with+respect+to+both+products+and+destinations.+Our+findings+suggest+that+stylized+facts+are+strongly+interconnected+across+different+levels+of+aggregation+of+trade+data+%2C+so+that+a+unifying+explanation+is+called+for.+By+incorporating+stochastic+elements+into+standard+trade+models+we+can+improve+their+ability+to+explain+relevant+facts+about+world+trade.&rft.publisher=IMT+Institute+for+Advanced+Studies+Lucca&rft.date=2013-01&rft.type=Working+Paper&rft.type=NonPeerReviewed&rft.format=application%2Fpdf&rft.language=en&rft.identifier=http%3A%2F%2Feprints.imtlucca.it%2F1461%2F1%2FEIC_WP_1_2013.pdf&rft.identifier=++Riccaboni%2C+Massimo+and+Schiavo%2C+Stefano++Stochastic+Trade+Networks.++EIC+working+paper+series++%231%2F2013++++IMT+Institute+for+Advanced+Studies+Lucca++++ISSN+2279-6894.++++++