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A Balls-and-Bins Model of Trade: Reply

Author

Listed:
  • Roc Armenter
  • Miklós Koren

Abstract

Blum, Claro, and Horstmann (2016) make two statements about the balls-and-bins model of Armenter and Koren (2014). First, that using firm-level shipment data changes some of our results. Second, that the balls-and-bins model is not an appropriate statistical method. We respond to the first statement and argue that the second statement is unfounded and unrelated to the first. Indeed, the work of Blum, Claro, and Horstmann (2016) is a perfect example of how to use balls-and-bins in a rich dataset to spot interesting data patterns. (JEL F11, F14)

Suggested Citation

  • Roc Armenter & Miklós Koren, 2016. "A Balls-and-Bins Model of Trade: Reply," American Economic Review, American Economic Association, vol. 106(3), pages 852-854, March.
    • Handle: RePEc:aea:aecrev:v:106:y:2016:i:3:p:852-54
    Note: DOI: 10.1257/aer.20151233
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    References listed on IDEAS

    as
    1. Kropf, Andreas & Sauré, Philip, 2014. "Fixed costs per shipment," Journal of International Economics, Elsevier, vol. 92(1), pages 166-184.
    2. Hornok, Cecília & Koren, Miklós, 2015. "Administrative barriers to trade," Journal of International Economics, Elsevier, vol. 96(S1), pages 110-122.
    3. Ellison, Glenn & Glaeser, Edward L, 1997. "Geographic Concentration in U.S. Manufacturing Industries: A Dartboard Approach," Journal of Political Economy, University of Chicago Press, vol. 105(5), pages 889-927, October.
    4. Bernardo S. Blum & Sebastian Claro & Ignatius J. Horstmann, 2016. "A Balls-and-Bins Model of Trade: Comment," American Economic Review, American Economic Association, vol. 106(3), pages 843-851, March.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    JEL classification:

    • F11 - International Economics - - Trade - - - Neoclassical Models of Trade
    • F14 - International Economics - - Trade - - - Empirical Studies of Trade

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