LeSage, James P., Fischer, Manfred M. 2018. Cross-sectional dependence model specifications in a static trade panel data setting. 58th Congress of the ERSA, Cork, Irland, 28.08.-31.08.2018.

RIS

@CONFERENCE{LeSage2018,
title = {Cross-sectional dependence model specifications in a static trade panel data setting},
author = {James P. LeSage and Manfred M. Fischer},
year = {2018},
address = {Cork},
url = {https://ersa.eventsair.com/QuickEventWebsitePortal/58th-ersa-congress-cork-28-31-august-2018/ersa2018},
language = {EN},
misc = {58th Congress of the ERSA},
abstract = {The focus is on cross-sectional dependence in panel trade flow models. We propose alternative specifications for modeling time invariant factors such as socio-cultural indicator variables, e.g., common language and currency. These are typically treated as a source of heterogeneity eliminated using fixed effects transformations, but we find evidence of cross-sectional dependence after eliminating country-specific effects. These findings suggest use of alternative simultaneous dependence model specifications that accommodate cross-sectional dependence, which we set forth along with Bayesian estimation methods. Ignoring cross-sectional dependence implies biased estimates from panel trade flow models that rely on fixed effects.},
}