TY  - RPRT
ID  - eprints1461
EP  - 29
A1  - Riccaboni, Massimo
A1  - Schiavo, Stefano
SN  - 2279-6894
PB  - IMT Institute for Advanced Studies Lucca
M1  - imt_eic_working_paper
N2  - 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
growth: the first (discrete) determines the formation of trade links, the second (continuous) governs trade intensity. We show that our setup is able to simultaneously match a large number of empirical regularities, such as the
fraction 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 , 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.
TI  - Stochastic Trade Networks
AV  - public
KW  - JEL Codes: F14
KW  -  F43
KW  -  O25
Y1  - 2013/01//
UR  - http://eprints.imtlucca.it/1461/
ER  -