Arbeitspapier
Structural gravity estimation & agriculture
Recently, discussion about the appropriate estimation of gravity trade models has started in agriculture. Here, we are going to review recent developments in the literature. It appears that fixed effects Poisson Pseudo Maximum Likelihood is not only the only consistent estimator [Santos Silva and Tenreyro, 2006] but also it already allows for a structural fit [Fally, 2012]. Fixed effects in conjunction with the adding-up property of Poisson Pseudo Maximum Likelihood - which has been so far neglegted - can be harnessed to directly deduce multilateral resistance indexes (i.e. general equilibrium effects) from reduced-form estimation. This innovation made by Fally will ease comparative statics and incidence analysis, making Poisson Pseudo Maximum Likelihood even more preferable in practice.
- Language
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Englisch
- Bibliographic citation
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Series: Diskussionsbeitrag ; No. 1209
- Classification
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Wirtschaft
- Subject
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Gravity Estimation
Poisson Pseudo Maximum Likelihood
Adding-up
Structural Fit
- Event
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Geistige Schöpfung
- (who)
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Prehn, Sören
Brümmer, Bernhard
Glauben, Thomas
- Event
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Veröffentlichung
- (who)
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Georg-August-Universität Göttingen, Department für Agrarökonomie und Rurale Entwicklung (DARE)
- (where)
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Göttingen
- (when)
-
2012
- Handle
- Last update
-
10.03.2025, 11:44 AM CET
Data provider
This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Prehn, Sören
- Brümmer, Bernhard
- Glauben, Thomas
- Georg-August-Universität Göttingen, Department für Agrarökonomie und Rurale Entwicklung (DARE)
Time of origin
- 2012
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