The formulation and estimation of random effects panel data models of trade
AbstractThe paper introduces for the most frequently used three-dimensional panel data sets several random effects model specifications. It derives appropriate estimation methods for the balanced and unbalanced cases. An application is also presented where the bilateral trade of 20 EU countries is analysed for the period 2001-2006. The differences between the fixed and random effects specifications are highlighted through this empirical exercise.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 36789.
Date of creation: 17 Feb 2012
Date of revision:
panel data; multidimensional panel data; random effects; error components model; trade model; gravity mode;
Other versions of this item:
- László Mátyás & Cecilia Hornok & Daria Pus, 2012. "The Formulation and Estimation of Random Effects Panel Data Models of Trade," CEU Working Papers 2012_1, Department of Economics, Central European University, revised 25 Mar 2013.
- C13 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Estimation: General
- F11 - International Economics - - Trade - - - Neoclassical Models of Trade
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Longitudinal Data; Spatial Time Series
- F17 - International Economics - - Trade - - - Trade Forecasting and Simulation
- F1 - International Economics - - Trade
- C21 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models
- C01 - Mathematical and Quantitative Methods - - General - - - Econometrics
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- Daria Pus & László Mátyás & Cecilia Hornok, 2013. "Modelling Firm-Product Level Trade: A Multi-Dimensional Random Effects Panel Data Approach," CEU Working Papers 2013_2, Department of Economics, Central European University, revised 08 May 2013.
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