Mario Larch
Biographic Data
| ID | 1073095 |
|---|---|
| NAME | Mario Larch |
| GIVEN NAMES | Mario |
| FAMILY NAME | Larch |
| SIGNATURE | LARCH M |
| AFFILIATIONS | University of Bayreuth |
| ORCID | 0000-0001-9355-2004 |
| VERIFIED | Yes |
| TOTAL WORKS | 15 |
| TOTAL CITATIONS | 7 |
| AUTHOR COUNT | 15 |
| EDITOR COUNT | 0 |
| FIRST PUBLICATION YEAR | 2008 |
| LATEST PUBLICATION YEAR | 2026 |
| H-INDEX | 2 |
The Granular Trade and Production Activities (GRANTPA) Database
This paper introduces the Granular Trade and Production Activities (GRANTPA) database, which covers international trade flows for 3,124 products and 247 countries over the period 1995–2019 as well as domestic trade flows and production data for the same number of products and years for a subset of 35 European economies. The original data sources that we employ are Eurostat’s Comext and Prodcom databases. A gravity application delivers a large set…
Unlocking New Methods to Estimate Country‐Specific Effects and Trade Elasticities With the Structural Gravity Model
We propose new methods to identify the impact of country‐specific characteristics, policies, and trade costs on bilateral trade flows within the structural gravity framework. We complement theory with a simple two‐stage estimating procedure and offer proof of concept by quantifying the impact of country‐specific research and development (R&D) expenditure on trade. Our results suggest a positive relationship overall but a larger impact of R&D on i…
Spain, split and talk: Quantifying regional independence
Estimating the effects of trade agreements: Lessons from 60 years of methods and data
Starting with Tinbergen (1962, Shaping the world economy: Suggestions for an international economic policy , The Twentieth Century Fund), quantifying the effects of regional trade agreements (RTAs) on international trade flows has always been among the most popular topics in the trade literature. Also not surprisingly, to estimate the effects of RTAs, most researchers and policy analysts have relied on the workhorse model of trade—the gravity equ…
Convex vacancy creation costs and on‐the‐job search in a global economy
Convex vacancy creation costs shape firms’ responses to trade liberalisation. They induce capacity constraints by increasing firms’ costs of production. A profit maximising firm will therefore not fully meet the increased foreign demand, but serve only a few export markets. More productive firms will export to more countries and profit more from trade liberalisation. To get an effect of trade liberalisation on wage inequality, we need on‐the‐job …
Economic determinants of regional trade agreements revisited using machine learning
Gravity Estimations with Interval Data: Revisiting the Impact of Free Trade Agreements
We challenge the common practice of estimating gravity equations with interval or averaged data in order to capture dynamic‐adjustment effects to trade‐policy changes. Instead, we point to a series of advantages of using consecutive‐year data recognizing dynamic‐adjustment effects. Our analysis reveals that, relative to interval or averaged data, the use of consecutive‐year data avoids downward‐biased effect estimates due to the distribution of t…
Negative Trade Shocks and Gender Inequality: Evidence from the USA
We study the differential post‐layoff responses in labour market outcomes for men versus women when unemployment is caused by international trade. We capitalize on the richness and unique design of two US Trade Adjustment Assistance (TAA) datasets to analyse gender differentials in wages and employment. Three main findings stand out from our analysis. First, the pre‐layoff wage gap between men and women who have lost their jobs due to trade and e…
A Tale of (almost) 1001 Coefficients: The Deep and Heterogeneous Effects of the EU‐Turkey Customs Union
In view of the deferred start of negotiations for the modernization of the customs union between the EU and Turkey (CU‐EUT), we looked back and analysed the ex post trade consequences of the CU‐EUT. Employing up‐to‐date econometric best practices for regional integration agreements, we quantified both the total and the heterogeneous trade effects of the CU‐EUT. In contrast with most previous studies, our results indicate that the CU‐EUT made a si…
Transitional Growth and Trade with Frictions: A Structural Estimation Framework
We build and estimate a structural model of transitional growth and trade in a many-country world. The gravity model of trade is combined with a capital accumulation mechanism driving transition between steady states. Trade affects growth through changes in consumer and producer prices. Simultaneously, capital accumulation affects trade directly through changes in country size and indirectly through changes in the incidence of trade costs. Theory…
Can degrowth overcome the leakage problem of unilateral climate policy
An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model
An Advanced Guide to Trade Policy Analysis is a follow up to A Practical Guide to Trade Policy Analysis. The Advanced Guide provides the most recent tools for analysis of trade policy using structural gravity models. Written by experts who have contributed to the development of theoretical and empirical methods in the academic gravity literature and who have rich practical experience in the field, this publication explains how to conduct partial …
Economic integration agreements, border effects, and distance elasticities in the gravity equation
Endogenous Tariffs in the Presence of Multinationals
This paper analyzes the effect of the presence of multinational firms on endogenous tariff rates, using an analytically solvable two-country model with fixed terms of trade. Noncooperative tariffs are lower in the presence of market-seeking (horizontal) foreign direct investment (FDI). Such firms avoid trade and entail a loss of tariff revenues for importing countries. In the case of low-cost-seeking (vertical) FDI, the results are less clear-cut…
Interdependent preferential trade agreement memberships: An empirical analysis
Gravity Estimations with Interval Data: Revisiting the Impact of Free Trade Agreements
We challenge the common practice of estimating gravity equations with interval or averaged data in order to capture dynamic‐adjustment effects to trade‐policy changes. Instead, we point to a series of advantages of using consecutive‐year data recognizing dynamic‐adjustment effects. Our analysis reveals that, relative to interval or averaged data, the use of consecutive‐year data avoids downward‐biased effect estimates due to the distribution of t…
A Tale of (almost) 1001 Coefficients: The Deep and Heterogeneous Effects of the EU‐Turkey Customs Union
In view of the deferred start of negotiations for the modernization of the customs union between the EU and Turkey (CU‐EUT), we looked back and analysed the ex post trade consequences of the CU‐EUT. Employing up‐to‐date econometric best practices for regional integration agreements, we quantified both the total and the heterogeneous trade effects of the CU‐EUT. In contrast with most previous studies, our results indicate that the CU‐EUT made a si…
Transitional Growth and Trade with Frictions: A Structural Estimation Framework
We build and estimate a structural model of transitional growth and trade in a many-country world. The gravity model of trade is combined with a capital accumulation mechanism driving transition between steady states. Trade affects growth through changes in consumer and producer prices. Simultaneously, capital accumulation affects trade directly through changes in country size and indirectly through changes in the incidence of trade costs. Theory…
Endogenous Tariffs in the Presence of Multinationals
This paper analyzes the effect of the presence of multinational firms on endogenous tariff rates, using an analytically solvable two-country model with fixed terms of trade. Noncooperative tariffs are lower in the presence of market-seeking (horizontal) foreign direct investment (FDI). Such firms avoid trade and entail a loss of tariff revenues for importing countries. In the case of low-cost-seeking (vertical) FDI, the results are less clear-cut…
Interdependent preferential trade agreement memberships: An empirical analysis
Economic integration agreements, border effects, and distance elasticities in the gravity equation
An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model
An Advanced Guide to Trade Policy Analysis is a follow up to A Practical Guide to Trade Policy Analysis. The Advanced Guide provides the most recent tools for analysis of trade policy using structural gravity models. Written by experts who have contributed to the development of theoretical and empirical methods in the academic gravity literature and who have rich practical experience in the field, this publication explains how to conduct partial …
Can degrowth overcome the leakage problem of unilateral climate policy
Transitional Growth and Trade with Frictions: A Structural Estimation Framework
We build and estimate a structural model of transitional growth and trade in a many-country world. The gravity model of trade is combined with a capital accumulation mechanism driving transition between steady states. Trade affects growth through changes in consumer and producer prices. Simultaneously, capital accumulation affects trade directly through changes in country size and indirectly through changes in the incidence of trade costs. Theory…
A Tale of (almost) 1001 Coefficients: The Deep and Heterogeneous Effects of the EU‐Turkey Customs Union
In view of the deferred start of negotiations for the modernization of the customs union between the EU and Turkey (CU‐EUT), we looked back and analysed the ex post trade consequences of the CU‐EUT. Employing up‐to‐date econometric best practices for regional integration agreements, we quantified both the total and the heterogeneous trade effects of the CU‐EUT. In contrast with most previous studies, our results indicate that the CU‐EUT made a si…
Convex vacancy creation costs and on‐the‐job search in a global economy
Convex vacancy creation costs shape firms’ responses to trade liberalisation. They induce capacity constraints by increasing firms’ costs of production. A profit maximising firm will therefore not fully meet the increased foreign demand, but serve only a few export markets. More productive firms will export to more countries and profit more from trade liberalisation. To get an effect of trade liberalisation on wage inequality, we need on‐the‐job …
Economic determinants of regional trade agreements revisited using machine learning
Gravity Estimations with Interval Data: Revisiting the Impact of Free Trade Agreements
We challenge the common practice of estimating gravity equations with interval or averaged data in order to capture dynamic‐adjustment effects to trade‐policy changes. Instead, we point to a series of advantages of using consecutive‐year data recognizing dynamic‐adjustment effects. Our analysis reveals that, relative to interval or averaged data, the use of consecutive‐year data avoids downward‐biased effect estimates due to the distribution of t…
Negative Trade Shocks and Gender Inequality: Evidence from the USA
We study the differential post‐layoff responses in labour market outcomes for men versus women when unemployment is caused by international trade. We capitalize on the richness and unique design of two US Trade Adjustment Assistance (TAA) datasets to analyse gender differentials in wages and employment. Three main findings stand out from our analysis. First, the pre‐layoff wage gap between men and women who have lost their jobs due to trade and e…
Estimating the effects of trade agreements: Lessons from 60 years of methods and data
Starting with Tinbergen (1962, Shaping the world economy: Suggestions for an international economic policy , The Twentieth Century Fund), quantifying the effects of regional trade agreements (RTAs) on international trade flows has always been among the most popular topics in the trade literature. Also not surprisingly, to estimate the effects of RTAs, most researchers and policy analysts have relied on the workhorse model of trade—the gravity equ…
Unlocking New Methods to Estimate Country‐Specific Effects and Trade Elasticities With the Structural Gravity Model
We propose new methods to identify the impact of country‐specific characteristics, policies, and trade costs on bilateral trade flows within the structural gravity framework. We complement theory with a simple two‐stage estimating procedure and offer proof of concept by quantifying the impact of country‐specific research and development (R&D) expenditure on trade. Our results suggest a positive relationship overall but a larger impact of R&D on i…
Spain, split and talk: Quantifying regional independence
The Granular Trade and Production Activities (GRANTPA) Database
This paper introduces the Granular Trade and Production Activities (GRANTPA) database, which covers international trade flows for 3,124 products and 247 countries over the period 1995–2019 as well as domestic trade flows and production data for the same number of products and years for a subset of 35 European economies. The original data sources that we employ are Eurostat’s Comext and Prodcom databases. A gravity application delivers a large set…
Economics (13 works) · Global trade and economics (13 works) · International economics (9 works) · Econometrics (6 works) · International trade (6 works) · Fiscal Policy and Economic Growth (5 works) · Gravity model of trade (4 works) · Mathematics (4 works) · Political science (4 works) · Bilateral trade (3 works)