Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/27263 
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dc.contributor.authorSiliverstovs, Borissen
dc.contributor.authorSchumacher, Dieteren
dc.date.accessioned2007-11-22-
dc.date.accessioned2009-08-06T13:19:21Z-
dc.date.available2009-08-06T13:19:21Z-
dc.date.issued2007-
dc.identifier.urihttp://hdl.handle.net/10419/27263-
dc.description.abstractThis study compares two alternative approaches to estimate parameters in gravity equations. We compare the traditional OLS approach applied to the log-linear form of the gravity model with the Poisson Quasi Maximum Likelihood (PQML) estimation procedure applied to the non-linear multiplicative specification of the gravity model. We use the trade flows for all products, for all manufacturing products as well as for manufacturing products broken down by three-digit ISIC Rev.2 categories. We base our conclusions on the generalised gravity model of Bergstrand (1989) that allows us to investigate differences in factor-proportions and home-market effects at the industry level. In addition, we compare the effects of other explanatory variables such as exporter and importer total income, distance, preferential trade agreements, common border, historical ties, and common language on the volume of trade. Our study provides comprehensive evidence on likely qualitative and/or quantitative differences in the values of estimated coefficients as a result of application of an alternative estimation method. Our main conclusion is that both estimation results as well as results of the regression misspecification tests provide supporting evidence for the PQML estimation approach over the OLS estimation method.en
dc.language.isoengen
dc.publisher|aDeutsches Institut für Wirtschaftsforschung (DIW) |cBerlinen
dc.relation.ispartofseries|aDIW Discussion Papers |x739en
dc.subject.jelF12en
dc.subject.ddc330en
dc.subject.keywordgeneralised gravity equationen
dc.subject.keywordPoisson regressionen
dc.subject.stwGravitationsmodellen
dc.subject.stwInternationale Wirtschaftsbeziehungenen
dc.subject.stwSchätztheorieen
dc.subject.stwStatistische Verteilungen
dc.subject.stwMaximum-Likelihood-Methodeen
dc.subject.stwSchätzungen
dc.subject.stwOECD-Staatenen
dc.titleEstimating gravity equations: to log or not to log?-
dc.type|aWorking Paperen
dc.identifier.ppn550070400en
dc.rightshttp://www.econstor.eu/dspace/Nutzungsbedingungenen
dc.identifier.repecRePEc:diw:diwwpp:dp739en

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