eprintid: 1461
rev_number: 14
eprint_status: archive
userid: 6
dir: disk0/00/00/14/61
datestamp: 2013-01-22 15:35:01
lastmod: 2013-01-22 15:52:05
status_changed: 2013-01-22 15:52:05
type: monograph
metadata_visibility: show
creators_name: Riccaboni, Massimo
creators_name: Schiavo, Stefano
creators_id: massimo.riccaboni@imtlucca.it
creators_id: 
title: Stochastic Trade Networks
ispublished: pub
subjects: HB
subjects: HF
divisions: EIC
full_text_status: public
monograph_type: imt_eic_working_paper
keywords: JEL Codes: F14, F43, O25
abstract: 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.
date: 2013-01
date_type: published
number: 1
publisher: IMT Institute for Advanced Studies Lucca
pages: 29
institution: IMT Institute for Advanced Studies Lucca
issn: 2279-6894
funders: Financial support received through the research project ‘The international trade network: empirical analyses and theoretical models’
citation:   Riccaboni, Massimo and Schiavo, Stefano  Stochastic Trade Networks.  EIC working paper series  #1/2013    IMT Institute for Advanced Studies Lucca    ISSN 2279-6894.      
document_url: http://eprints.imtlucca.it/1461/1/EIC_WP_1_2013.pdf