The log of gravity revisited

Applied Economics

Volumn 45, Issue 3, 2013, Pages 311-327

  MartíŔnez Zarzoso, Inmaculada ^a,b  

^a UNIVERSITY OF GÖTTINGEN   (Germany)

^b UNIVERSITAT JAUME I   (Spain)

Author keywords

Constant elasticity models; Feasible generalized least squares (FGLS); Heteroscedasticity; Maximum likelihood; Poisson regression; Simulations

Indexed keywords

COMPUTER SIMULATION; ECONOMIC ANALYSIS; LEAST SQUARES METHOD; MAXIMUM LIKELIHOOD ANALYSIS; NUMERICAL MODEL; REGRESSION ANALYSIS;

EID: 80053062823     PISSN: 00036846     EISSN: 14664283     Source Type: Journal    
DOI: 10.1080/00036846.2011.599786     Document Type: Article

References (28)

1. Anderson, J. E. and van Wincoop, E. (2003) Gravity with gravitas: a solution to the border puzzle, American Economic Review, 93, 70-192.
2. Baier, S. L. and Bergstrand, J. H. (2007) Do free trade agreements actually increase members' international trade, Journal of International Economics, 71, 72-95.
3. Baldwin, R. and Taglioni, D. (2006) Gravity for dummies and dummies for gravity equations, National Bureau of Economic Research Working Paper No. 12516, Cambridge.
4. Baser, O. (2007) Modeling transformed health care cost with unknown heteroskedasticity, Applied Economic Research Bulletin, 1, 1-9.
5. Carrere, C. (2006) Revisiting the effects of regional trade agreements on trade flows with proper specification of the gravity model, European Economic Review, 50, 223-47.
6. Carroll, R. J. (1982) Adapting for heteroskedasticity in linear models, Annals of Statistics, 10, 1224-33.
7. Chen, I.-H. and Tsai, Y.-Y. (2005) Estimating the staged effects of regional economic integration on trade volumes, mimeo, National University of Kaohsiung, Taiwan
8. Deb, P., Manning, W. and Norton, E. (2008) Modeling health care costs and counts, in ASHE (American Society for Healthcare Engineering) - Duke University Conference.
9. Delgado, M. A. (1992) Computing Nonparametric functional estimates in semiparametric problems, Econometric Reviews, 12, 125-8.
10. Delgado, M. A. (1993) Semiparametric generalized least squares in the multivariate nonlinear regression model, Econometric Theory, 8, 203-22.
11. Feenstra, R. C. (2004) Advanced International Trade: Theory and Evidence, Princeton University Press, Princeton.
12. Harvey, A. C. (1976) Estimating regression models with multiplicative heteroscedasticity, Econometrica, 44, 461-5.
13. Heckman, J. J. (1979) Sample selection bias as a specification error, Econometrica, 47, 153-61.
14. Helpman, E., Melitz, M. and Rubinstein, Y. (2008) Estimating trade flows: trading partners and trading volumes, The Quarterly Journal of Economics, 123, 441-87.
15. Manning, W. G. (1998) The logged dependent variable, heteroskedasticity and the retransformation problem, Journal of Health Economics, 17, 283-95.
16. Manning, W. G. and Mullahy, J. (2001) Estimating log models: to transform or not to transform?, Journal of Health Economics, 20, 461-94.
17. Marquez-Ramos, L., Martinez-Zarzoso, I. and Suarez Burguet, C. (2007) The role of distance in gravity regressions: is there really a missing globalization puzzle?, The BE Journal of Economic Analysis and Policy, 7, 1-25.
18. Martin, W. and Pham, C. S. (2008) Estimating the gravity model when zero trade flows are frequent, mimeo, Deakin University, Australia.
19. Martinez-Zarzoso, I. F. Nowak-Lehmann D. and Horsewood N. (2009) Are regional trading agreements beneficial? Static and dynamic panel gravity models, North American Journal of Economics and Finance, 20, 46-65.
20. Martinez-Zarzoso, I., Perez-Garcia, E. and Suarez Burguet, C. (2008) Do transport costs have a differential effect on trade at the sectoral level?, Applied Economics, 40, 3145-57.
21. Oguledo, V. I. and Macphee, C. R. (1994) Gravity models: a reformulation and an application to discriminatory trade arrangements, Applied Economics, 26, 107-20.
22. Porojan, A. (2001) Trading flows and spatial effects: the gravity model revisited, Open Economies Review, 12, 265-80.
23. Robinson, P. M. (1987) Asymptotically efficient estimation in the presence of hetereoskedasticity of unknown form, Econometrica, 55, 875-91.
24. Rose, A. K. (2005) Does the WTO makes trade more stable?, Open Economies Review, 16, 7-22.
25. Santos Silva, J. M. C. and Tenreyro, S. (SST) (2006) The log of gravity, Review of Economics and Statistics, 88, 641-58.
26. Santos Silva, J. M. C. and Tenreyro, S. (SST) (2011) Further simulation evidence on the performance of the Poisson pseudo-maximum likelihood estimator, Economics Letters, 112, 220-2.
27. Soloaga, I. and Winters, A. (2001) Regionalism in the nineties: what effects on trade?, North American Journal of Economics and Finance, 12, 1-29.
28. Wooldridge, J. M. (2009) Introductory Econometrics: A Modern Approach, 4th edn, Cincinnati, OH, South-Western.