Estimating the gravity model without gravity using panel data

Abstract: 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

Location
Deutsche Nationalbibliothek Frankfurt am Main
Extent
Online-Ressource
Language
Englisch
Notes
Postprint
begutachtet (peer reviewed)
In: Applied Economics ; 43 (2009) 6 ; 641-

Classification
Wirtschaft

Event
Veröffentlichung
(where)
Mannheim
(when)
2009
Creator
Westerlund, Joakim
Wilhelmsson, Fredrik

DOI
10.1080/00036840802599784
URN
urn:nbn:de:0168-ssoar-241910
Rights
Open Access unbekannt; Open Access; Der Zugriff auf das Objekt ist unbeschränkt möglich.
Last update
25.03.2025, 1:54 PM CET

Data provider

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Associated

  • Westerlund, Joakim
  • Wilhelmsson, Fredrik

Time of origin

  • 2009

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