Priya Ranjan and Justin Tobias, "Bayesian Inference for the Gravity Model", Journal of Applied Econometrics, Vol. 22, No. 4, 2007, pp. 817-838. The data for this paper are given in four separate files. In the paper, separate analyses are conducted for three types of goods: differentiated, reference, and homogenous. The files, "diff_data_final.txt," "ref_data_final.txt" and "hom_data_final.txt" contain bilateral trade data for the differentiated, reference, and homogenous goods analyses, respectively. Each of these three files contains 3081 observations, corresponding to bilateral trade information for 79 different countries. (Note: 78 + 77 + 76 + ... = 78(79)/2 = 3081, so each file contains a complete record of all bilateral trade combinations between these 79 countries). The variables in each of the three data files are given as follows: Column 1: Bilateral Trade Column 2: Border Dummy (=1 if the countries share a common border) Column 3: Log Distance (the log of the distance between the countries) Columns 4:82 A dummy variable matrix denoting the countries corresponding to the given observation. Each row of this matrix will contain two ones (all other entries are zero) to select off the appropriate countries for that observation. Note that all data sets are first pre-sorted by the value of contract enforcement (see below) so that country "1" refers to the same country in each data file. The final data set is "first_stage.txt." This data set contains information on contract enforcement and log GDP, and is measured at the country level. The data set thus has 79 observations on 2 variables. The variables in this final data file are: Column 1: Contracts (our measure of contract enforcement) Column 2: Log GDP Note that the data have first been sorted by the value of contract enforcement so that country "1" in our analysis corresponds to the country with the lowest value of contract enforcement, while country "79" has the highest value. Given this sorting, the file "first_stage.txt" can be used for analysis of all three types of goods. The data files are ASCII files in DOS format. They are zipped in the file tr-data.zip. Unix users should use "unzip -a".