Confidence intervals for the trade cost parameters of cross-section gravity models

Michael Pfaffermayr

Economics Letters, 2021, vol. 201, issue C

Abstract: Confidence intervals using robust PPML-standard errors are too small in cross-section gravity models. Monte Carlo simulations indicate approximately correct coverage rates of jackknife and percentile bootstrap confidence intervals. Those of constrained PPML estimates are reliable, if trade costs are non-stochastic.

Keywords: Poisson pseudo maximum likelihood estimation; Confidence interval; Heteroskedasticity-robust inference; Gravity equation; Bootstrap (search for similar items in EconPapers)
JEL-codes: C13 C50 F10 F15 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:ecolet:v:201:y:2021:i:c:s0165176521000641

DOI: 10.1016/j.econlet.2021.109787

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