Journal article | Zeitschriftenartikel

Estimating the gravity model without gravity using panel data

This paper examines the effects of zero trade on the estimation of the gravity model using both simulated and real data with a panel structure, which is different from the more conventional cross-sectional structure. We begin by showing that the usual log-linear estimation method can result in highly deceptive inference when some observations are zero. As an alternative approach, we suggest using the Poisson fixed effects estimator. This approach eliminates the problems of zero trade and is shown to perform well in small samples.

Estimating the gravity model without gravity using panel data

Urheber*in: Westerlund, Joakim; Wilhelmsson, Fredrik

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Extent
Seite(n): 641-
Language
Englisch
Notes
Status: Postprint; begutachtet (peer reviewed)

Bibliographic citation
Applied Economics, 43(6)

Event
Geistige Schöpfung
(who)
Westerlund, Joakim
Wilhelmsson, Fredrik
Event
Veröffentlichung
(when)
2009

DOI
URN
urn:nbn:de:0168-ssoar-241910
Rights
GESIS - Leibniz-Institut für Sozialwissenschaften. Bibliothek Köln
Last update
21.06.2024, 4:27 PM CEST

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Object type

  • Zeitschriftenartikel

Associated

  • Westerlund, Joakim
  • Wilhelmsson, Fredrik

Time of origin

  • 2009

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