Stochastic trade networks

نویسندگان

  • Massimo Riccaboni
  • Stefano Schiavo
چکیده

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. JEL Codes: F14, F43, O25

برای دانلود رایگان متن کامل این مقاله و بیش از 32 میلیون مقاله دیگر ابتدا ثبت نام کنید

ثبت نام

اگر عضو سایت هستید لطفا وارد حساب کاربری خود شوید

منابع مشابه

Investigating the Effect of Trade Shocks on employment in tradable and non-tradable sectors in Iran: A Dynamic Stochastic General Equilibrium Model (DSGE)

The aim of this paper is the analysis of trade shocks on tradable and non-tradable employment. To do so, a dynamic stochastic general equilibrium model is designed for Iran economy and the sectors of model are tradable, non-tradable and import. The variables related to foreign trade sector are nominal and real exchange rate, the law of one price gap and terms of trade. The structural parameters...

متن کامل

Arrival probability in the stochastic networks with an established discrete time Markov chain

The probable lack of some arcs and nodes in the stochastic networks is considered in this paper, and its effect is shown as the arrival probability from a given source node to a given sink node. A discrete time Markov chain with an absorbing state is established in a directed acyclic network. Then, the probability of transition from the initial state to the absorbing state is computed. It is as...

متن کامل

The Impact of Monetary and Exchange Policies on the Country’s Trade balance Fluctuation with the Approach of Dynamic Stochastic General Equilibrium (DSGE) models

This paper uses the framework of new Keynesian school and the literature of the Dynamic Stochastic General Equilibrium (DSGE) model to build a general model that can be estimated for Iran economy. By simulating this model, the effects of the implementation of monetary and foreign exchange policies through policy instruments including bank interest rate, central bank international reserves and t...

متن کامل

Robust stability of stochastic fuzzy impulsive recurrent neural networks with\ time-varying delays

In this paper, global robust stability of stochastic impulsive recurrent neural networks with time-varyingdelays which are represented by the Takagi-Sugeno (T-S) fuzzy models is considered. A novel Linear Matrix Inequality (LMI)-based stability criterion is obtained by using Lyapunov functional theory to guarantee the asymptotic stability of uncertain fuzzy stochastic impulsive recurrent neural...

متن کامل

A special Class of Stochastic PERT Networks

Considering the network structure is one of the new approaches in studying stochastic PERT networks (SPN). In this paper, planar networks are studied as a special class of networks. Two structural reducible mechanisms titled arc contraction and deletion are developed to convert any planar network to a series-parallel network structure.&#10In series-parallel SPN, the completion time distribution...

متن کامل

AN EXTENSION TO STOCHASTIC TIME-COST TRADE-OFF PROBLEM OPTIMIZATION WITH DISCOUNTED CASH FLOW

In this paper, an efficient multi-objective model is proposed to solve time-cost trade off problem considering cash flows. The proposed multi-objective meta-heuristic is based on Ant colony optimization and is called Non Dominated Archiving Ant Colony Optimization (NAACO). The significant feature of this work is consideration of uncertainties in time, cost and more importantly interest rate. A ...

متن کامل

ذخیره در منابع من


  با ذخیره ی این منبع در منابع من، دسترسی به آن را برای استفاده های بعدی آسان تر کنید

عنوان ژورنال:
  • J. Complex Networks

دوره 2  شماره 

صفحات  -

تاریخ انتشار 2014