| Title: | One Sector Armington-CES Gravity Model with General Equilibrium |
| Type: | Package |
| Version: | 1.0.0 |
| Description: | Implements a one-sector Armington-CES gravity model with general equilibrium (GE) effects. This model is designed to analyze international and domestic trade by capturing the impacts of trade costs and policy changes within a general equilibrium framework. Additionally, it includes a local parameter to run simulations on productivity. The package provides functions for calibration, simulation, and analysis of the model. |
| License: | MIT + file LICENSE |
| Encoding: | UTF-8 |
| RoxygenNote: | 7.3.2 |
| Suggests: | testthat (≥ 3.0.0) |
| Config/testthat/edition: | 3 |
| Imports: | stats |
| NeedsCompilation: | no |
| Packaged: | 2025-04-21 18:26:20 UTC; Noe.Nava |
| Author: | Noé J Nava [aut, cre], Maros Ivanic [aut] |
| Maintainer: | Noé J Nava <noejnava2@gmail.com> |
| Repository: | CRAN |
| Date/Publication: | 2025-04-24 07:50:02 UTC |
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
)