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.
BibTeX
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.
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Status of publication | Published |
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Affiliation | WU |
Type of publication | Paper presented at an academic conference or symposium |
Language | English |
Title | Cross-sectional dependence model specifications in a static trade panel data setting |
Event | 58th Congress of the ERSA |
Year | 2018 |
Date | 28.08.-31.08.2018 |
Country | Ireland |
Location | Cork |
URL | https://ersa.eventsair.com/QuickEventWebsitePortal/58th-ersa-congress-cork-28-31-august-2018/ersa2018 |
JEL | JEL C18, C51, R11 |
Associations
- People
- LeSage, James P. (Former researcher)
- Fischer, Manfred M. (Details)
- Organization
- Institute for Economic Geography and GIScience IN (Details)
- Research areas (Ă–STAT Classification 'Statistik Austria')
- 1807 Economic geography (Details)
- 5323 Econometrics (Details)
- 5618 Regional economy (Details)