Trading Partners and Trading Volumes: Implementing the Helpman-Melitz-Rubinstein Model Empirically

João M.C. Santos Silva () and Silvana Tenreyro

CEP Discussion Papers from Centre for Economic Performance, LSE

Abstract: Helpman, Melitz, and Rubinstein (2008)-HMR-present a rich theoretical model to study thedeterminants of bilateral trade flows across countries. The model is then empiricallyimplemented through a two-stage estimation procedure. This note seeks to clarify someeconometric aspects of the estimation approach used by HMR and explore the consequencesof possible departures from the maintained distributional assumptions.

Keywords: Gravity equation; Heteroskedasticity; Jensen’s inequality (search for similar items in EconPapers)
JEL-codes: C13 C50 F10 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-int
Date: 2009-06
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Working Paper: Trading Partners and Trading Volumes:Implementing the Helpman-Melitz-Rubinstein Model Empirically (2008)
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Persistent link: http://EconPapers.repec.org/RePEc:cep:cepdps:dp0935

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