UNIGE document Scientific Article
previous document  unige:73271  next document
add to browser collection
Title

Semi-mixed effects gravity models for bilateral trade

Authors
Proença, Isabel
Savaşcı, Duygu
Published in Empirical economics. 2015, vol. 48, p. 361-387
Abstract In recent years, different alternatives have been suggested to specify and estimate gravity models for bilateral trade. Presently, the so-called Poisson pseudomaximum likelihood (PPML) with log-linear index is probably the most commonly used method. A method is proposed for panel data that targets to reconcile the pros and cons of fixed and random effects models, respectively. It applies equally to two- and three-way panel models and those with country-specific time-varying effects. It allows to filter out potential correlation between observed and unobserved heterogeneity and to identify the effects of time-invariant factors. It can also be used when panels are short in time, and to other specifications than the PPML-like gamma PML, zero-inflated, or Tobit-like models. We introduce and illustrate the proposed estimator with a study of bilateral trade flows across the European Union before the recent economic crisis.
Keywords Gravity modelsRegional tradePanel econometrics
Identifiers
Full text
Structures
Citation
(ISO format)
PROENÇA, Isabel, SPERLICH, Stefan Andréas, SAVAŞCI, Duygu. Semi-mixed effects gravity models for bilateral trade. In: Empirical Economics, 2015, vol. 48, p. 361-387. https://archive-ouverte.unige.ch/unige:73271

206 hits

1 download

Update

Deposited on : 2015-06-22

Export document
Format :
Citation style :