TY  - CHAP
TI  - Cross-sectional dependence model specifications in a static trade panel data setting
AB  - 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.
AF  - 58th Congress of the ERSA
PP  - Cork
UR  - https://ersa.eventsair.com/QuickEventWebsitePortal/58th-ersa-congress-cork-28-31-august-2018/ersa2018
PY  - 2018-01-01
AU  - LeSage, James P. 
AU  - Fischer, Manfred M. 
ER -