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Estimates of Trade Costs using Gravity Equation in Mixed Effects Model
Applied Economics and Finance
View Archive Info| Field | Value | |
| Title |
Estimates of Trade Costs using Gravity Equation in Mixed Effects Model
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| Creator |
Dogan, Eyup
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| Description |
By using a log-linear Taylor-series expansion to linearize the multilateral resistance terms, this study aims to estimate the theory-based gravity equation in mixed effects model to obtain not only unbiased and consistent but also efficient coefficient estimates of trade cost variables. We show that coefficient estimates of trade cost variables estimated using mixed effects model are close to those found by the existing literature; however, only those in this paper are efficient as a result of accounting for unobserved country heterogeneity and approximation errors.
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| Publisher |
Redfame Publishing
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| Contributor |
—
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| Date |
2016-02-04
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| Type |
info:eu-repo/semantics/article
info:eu-repo/semantics/publishedVersion Peer-reviewed Article |
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| Format |
application/pdf
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| Identifier |
http://redfame.com/journal/index.php/aef/article/view/1354
10.11114/aef.v3i2.1354 |
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| Source |
Applied Economics and Finance; Vol 3, No 2 (2016); 39-44
2332-7308 2332-7294 |
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| Language |
eng
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| Relation |
http://redfame.com/journal/index.php/aef/article/view/1354/1341
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