Constrained Poisson pseudo maximum likelihood estimation of structural gravity models
| Autor: | Michael Pfaffermayr |
|---|---|
| Rok vydání: | 2020 |
| Předmět: |
Gravity (chemistry)
020209 energy 05 social sciences Monte Carlo method Inference Estimator 02 engineering and technology PPML Poisson distribution General Business Management and Accounting Projection (linear algebra) Delta method symbols.namesake 0502 economics and business 0202 electrical engineering electronic engineering information engineering symbols Economics Applied mathematics 050207 economics General Economics Econometrics and Finance |
| Zdroj: | International Economics. 161:188-198 |
| ISSN: | 2110-7017 |
| DOI: | 10.1016/j.inteco.2019.11.014 |
| Popis: | This paper reconsiders the estimation of structural gravity models. It introduces a constrained, projection-based Poisson pseudo maximum likelihood estimation procedure (constrained PPML) that exploits the equilibrium conditions introduced by Anderson and Van Wincoop (2003) for estimation and inference. The constrained PPML estimator avoids the estimation of the large number of exporter and importer fixed effects, and provides more reliable inference than the unconstrained PPML estimator. Moreover, based on the delta method the paper drives confidence intervals of counterfactual changes. Monte Carlo simulations yield encouraging results on the performance of the constrained PPML estimator. |
| Databáze: | OpenAIRE |
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