Arbeitspapier
A Note on the Proper Econometric Specification of the Gravity Equation
Since the revival of the gravity literature in the early nineties most work has been done with cross-section data. Just a few more recent contributions made use of panel data. So far that research left open the question whether to treat time and country effects as random or fixed. This note sheds some light on the problems that are associated with a random effects approach. Arguments for the superiority of the fixed effects model arc given both along intuitive and econometric lines based on a Hausman test.
- Language
-
Englisch
- Bibliographic citation
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Series: WIFO Working Papers ; No. 108
- Classification
-
Wirtschaft
Multiple or Simultaneous Equation Models: Panel Data Models; Spatio-temporal Models
Empirical Studies of Trade
Economic Integration
- Subject
-
gravity equation
panel econometrics
- Event
-
Geistige Schöpfung
- (who)
-
Egger, Peter
- Event
-
Veröffentlichung
- (who)
-
Austrian Institute of Economic Research (WIFO)
- (where)
-
Vienna
- (when)
-
1999
- Handle
- Last update
-
10.03.2025, 11:42 AM CET
Data provider
This object is provided by:
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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
- Egger, Peter
- Austrian Institute of Economic Research (WIFO)
Time of origin
- 1999
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