Our first contribution is to extract systematic information on commercial linkages between cities from ancient texts. To do so, we leverage the fact that the ancient records we study can be transcribed into the Latin alphabet and digitized. We parse these texts and automatically isolate all tablets that jointly mention at least two cities. We systematically read those texts, which requires an intimate knowledge of the cuneiform script and Old Assyrian dialect of the ancient Akkadian language in which the records are written. Taking individual source context into account, this analysis identifies exclusively a subset of records that explicitly refer to trades between cities.
Our second contribution is to estimate a structural gravity model of ancient trade. We build a simple Ricardian model of trade. Our model makes predictions on the number of transactions between city pairs, which is observed in our data. Further imposing that bilateral trade frictions can be summarized by a power function of geographic distance, the model can be estimated solely on bilateral trade flows and the geographic location of at least some known cities. We estimate a distance elasticity of trade in the Bronze Age equal to 1.9, surprisingly close to modern estimates.Our third contribution is to use the structural gravity model to estimate the geographic location of lost cities. ...