Description
Raise positive GDP inputs to their supplied elasticities, multiply by nonnegative coefficient, and divide by distance raised to distanceElasticity.
Economic models simplify behavior through supplied technologies, coefficients, elasticities, or baselines. A calculated term reflects those assumptions rather than estimating them or proving causation.
Raise positive GDP inputs to their supplied elasticities, multiply by nonnegative coefficient, and divide by distance raised to distanceElasticity.
When to use this tool
Use Gravity Trade Economic Mass Term when you need one explicit economic-model term.
How to use the tool and how it works
- Enter firstGdp, secondGdp, distance, coefficient, firstElasticity, secondElasticity, distanceElasticity. Use the units and conventions below.
- Run the tool. Correct any format, range, or cross-field input error before interpreting the output.
- Read tradeReference. Use the output convention below.
Raise positive GDP inputs to their supplied elasticities, multiply by nonnegative coefficient, and divide by distance raised to distanceElasticity.1
| Input field | Meaning and units | Accepted input |
|---|---|---|
| firstGdp | First Gdp | Required. Finite number; strictly above 0. |
| secondGdp | Second Gdp | Required. Finite number; strictly above 0. |
| distance | Distance | Required. Finite number; strictly above 0. |
| coefficient | Supplied coefficient for the indicated basis or model term. | Required. Finite number; minimum 0. |
| firstElasticity | First Elasticity | Required. Finite number. |
| secondElasticity | Second Elasticity | Required. Finite number. |
| distanceElasticity | Distance Elasticity | Required. Finite number. |
| Output field | Interpretation | Returned shape |
|---|---|---|
| tradeReference | Trade Reference | Required. Finite number. |
{
"input": {
"firstGdp": 100,
"secondGdp": 200,
"distance": 10,
"coefficient": 0.01,
"firstElasticity": 1,
"secondElasticity": 1,
"distanceElasticity": 2
},
"output": {
"tradeReference": 2
}
}Limitations and assumptions
- This is one supplied gravity-model reference term without fitted parameters, multilateral resistance, statistical uncertainty, or a causal forecast.
- Inputs must satisfy both the field types and the cross-field conditions above. Invalid input causes an error; a successful false flag or documented placeholder is a different result.
- Numeric calculations use binary floating point unless exact decimal-integer arithmetic is explicitly stated. No hidden measurement tolerance or decimal rounding is added; nonfinite or out-of-contract results are rejected. Numeric signed-zero results are exported as zero.
Alternative or Complementary methods
Estimate and validate a complete model using suitable data and report its assumptions and uncertainty.
References
Similar or alternative tools
- Ricardian Opportunity Cost Two Goods Term
Divide each positive labor-per-good requirement by the other for reciprocal opportunity costs.
- External Adjustment Netexport Exchange Sensitivity
Multiply exportValue and importValue separately by their elasticity and signed exchangeChange.