LeSage, James P., Fischer, Manfred M. 2020. Cross-sectional dependence model specifications in a static trade panel data setting. Journal of Geographical Systems. 22 (1), 5-46.
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 sociocultural indicator variables, e.g., common language and currency. These are typically treated as a source of heterogeneity that is eliminated using fixed effects transformations, but we find evidence of cross-sectional dependence after eliminating country-specific and time-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 |
---|---|
Affiliation | WU |
Type of publication | Journal article |
Journal | Journal of Geographical Systems |
Citation Index | SSCI |
WU-Journal-Rating new | VW-D |
Language | English |
Title | Cross-sectional dependence model specifications in a static trade panel data setting |
Volume | 22 |
Number | 1 |
Year | 2020 |
Page from | 5 |
Page to | 46 |
Reviewed? | Y |
URL | https://link.springer.com/article/10.1007/s10109-019-00298-y |
DOI | https://doi.org/10.1007/s10109-019-00298-y |
Open Access | Y |
Open Access Link | https://link.springer.com/article/10.1007/s10109-019-00298-y |
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)
- 1810 Geographic Information Systems (GIS) (Details)