Conditional GMM estimation for gravity models

Nishihat, Masaya and Otsu, Taisuke ORCID: 0000-0002-2307-143X (2020) Conditional GMM estimation for gravity models. Economics Bulletin, 40 (2). 1106 - 1111. ISSN 1545-2921

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Abstract

This paper studies finite sample performances of the conditional GMM es- timators for a particular conditional moment restriction model, which is commonly ap- plied in economic analysis using gravity models of international trade. We consider the GMM estimator with growing moments and Dominguez and Lobato’s (2004) process- based GMM estimator. Under the simulation designs by Santos Silva and Tenreyro (2006, 2011), we find that Dominguez and Lobato’s (2004) estimator is favorably com- parable with the Poisson pseudo maximum likelihood estimator, and outperforms other estimators.

Item Type:	Article
Official URL:	http://www.accessecon.com/pubs/eb/
Additional Information:	© 2020 The Authors
Divisions:	Economics
Subjects:	H Social Sciences > HB Economic Theory
Date Deposited:	15 Jun 2020 15:39
Last Modified:	01 Nov 2024 05:35
URI:	http://eprints.lse.ac.uk/id/eprint/105083

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