Publication:
Making Gravity Great Again

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dc.contributor.authorMartin, Will
dc.date.accessioned2020-09-17T20:04:34Z
dc.date.available2020-09-17T20:04:34Z
dc.date.issued2020-09
dc.description.abstractThe gravity model is now widely used for policy analysis and hypothesis testing, but different estimators give sharply different parameter estimates and popular estimators are likely biased because dependent variables are limited-dependent, error variances are nonconstant and missing data frequently reported as zeros. Monte Carlo analysis based on real-world parameters for aggregate trade shows that the traditional Ordinary Least Squares estimator in logarithms is strongly biased downwards. The popular Poisson Pseudo Maximum Likelihood model also suffers from downward bias. An Eaton-Kortum maximum-likelihood approach dealing with the identified sources of bias provides unbiased parameter estimates.en
dc.identifierhttp://documents.worldbank.org/curated/en/100241599665436997/Making-Gravity-Great-Again
dc.identifier.doi10.1596/1813-9450-9391
dc.identifier.urihttps://hdl.handle.net/10986/34477
dc.languageEnglish
dc.publisherWorld Bank, Washington, DC
dc.relation.ispartofseriesPolicy Research Working Paper;No. 9391
dc.rightsCC BY 3.0 IGO
dc.rights.holderWorld Bank
dc.rights.urihttp://creativecommons.org/licenses/by/3.0/igo
dc.subjectGRAVITY MODEL
dc.subjectEATON-KORTUM MAXIMUM-LIKELIHOOD
dc.subjectTRADE STATISTICS
dc.subjectMISSING DATA
dc.titleMaking Gravity Great Againen
dc.typeWorking Paperen
dc.typeDocument de travailfr
dc.typeDocumento de trabajoes
dspace.entity.typePublication
okr.crossref.titleMaking Gravity Great Again
okr.date.disclosure2020-09-09
okr.doctypePublications & Research
okr.doctypePublications & Research::Policy Research Working Paper
okr.docurlhttp://documents.worldbank.org/curated/en/100241599665436997/Making-Gravity-Great-Again
okr.guid100241599665436997
okr.identifier.doi10.1596/1813-9450-9391
okr.identifier.externaldocumentum090224b087d8fc9d_2_0
okr.identifier.internaldocumentum32390200
okr.identifier.reportWPS9391
okr.importedtrueen
okr.language.supporteden
okr.pdfurlhttp://documents.worldbank.org/curated/en/100241599665436997/pdf/Making-Gravity-Great-Again.pdfen
okr.statistics.combined3273
okr.statistics.dr100241599665436997
okr.statistics.drstats2787
okr.topicMacroeconomics and Economic Growth::Economic Modeling and Statistics
okr.topicMacroeconomics and Economic Growth::Economic Theory & Research
okr.unitDevelopment Research Group, Development Economics
relation.isAuthorOfPublicationd6af18a6-3a50-5065-99ee-20853402f262
relation.isAuthorOfPublication.latestForDiscoveryd6af18a6-3a50-5065-99ee-20853402f262
relation.isSeriesOfPublication26e071dc-b0bf-409c-b982-df2970295c87
relation.isSeriesOfPublication.latestForDiscovery26e071dc-b0bf-409c-b982-df2970295c87
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