Understanding input and outputs

This guide will help you get started with GravityGE.jl for analyzing bilateral trade flows using gravity models with general equilibrium effects.

Key Parameters

• theta: Trade elasticity parameter (higher values = more substitutable goods)
• tol: Convergence tolerance (default: 1e-6)
• max_iter: Maximum iterations (default: 1000)
• multiplicative: Whether to use multiplicative deficits (default: false)

Understanding Results

The gravityGE function returns a dictionary with:

• :new_welfare: Welfare changes by region
• :new_wages: Wage changes (normalized)
• :new_prices: Price index changes
• :new_trade_flows: Updated bilateral trade flows