Arbeitspapier

Staggered Difference-in-Differences in Gravity Settings: Revisiting the Effects of Trade Agreements

We nest an extended two-way fixed effect (ETWFE) estimator for staggered difference-in-differences within the structural gravity model. To test the ETWFE, we estimate the effects of regional trade agreements (RTAs). The results suggest that RTA estimates in the current gravity literature may be biased downward (by more than 50% in our sample). Sensitivity analyses confirm the robustness of our main findings and demonstrate the applicability of our methods in different settings. We expect the ETWFE methods to have significant implications for the estimates of other policy variables in the trade literature and for gravity regressions on migration and FDI flows.

Sprache
Englisch

Erschienen in
Series: CESifo Working Paper ; No. 10782

Klassifikation
Wirtschaft
Estimation: General
Single Equation Models; Single Variables: Panel Data Models; Spatio-temporal Models
Trade: General
Trade Policy; International Trade Organizations
Empirical Studies of Trade
Thema
staggered difference-in-differences
gravity model
trade agreements

Ereignis
Geistige Schöpfung
(wer)
Nagengast, Arne J.
Yotov, Yoto V.
Ereignis
Veröffentlichung
(wer)
Center for Economic Studies and ifo Institute (CESifo)
(wo)
Munich
(wann)
2023

Handle
Letzte Aktualisierung
20.09.2024, 08:20 MESZ

Datenpartner

Dieses Objekt wird bereitgestellt von:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.

Objekttyp

  • Arbeitspapier

Beteiligte

  • Nagengast, Arne J.
  • Yotov, Yoto V.
  • Center for Economic Studies and ifo Institute (CESifo)

Entstanden

  • 2023

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