Lack of interregional trade data is often a major obstacle when doing economic analysis at the subnational level. This paper discusses a calibration procedure for estimating bilateral trade between the regions of a country. Our approach can be equivalently characterized as an application of the gravity-RAS or the doubly constrained gravity model method. Either way, a crucial element is represented by the distance elasticity parameter, which the user is expected to provide exogenously. We propose a way of estimating that parameter using standard econometric methods with readily available data and demonstrate our calibration procedure in a case study of Italy.
CAI Mattia;
2026-07-09
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
JRC129592
1742-1780 (online),
https://www.tandfonline.com/doi/full/10.1080/17421772.2022.2081715,
https://publications.jrc.ec.europa.eu/repository/handle/JRC129592,
10.1080/17421772.2022.2081715 (online),
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