Scale-dependence of the Negative Binomial Pseudo-Maximum Likelihood Estimator

Clement Bosquet and Herve Boulhol

Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne

Abstract: Following Santos Silva and Tenreyro (2006), various studies have used the Poisson Pseudo-Maximum Likelihood to estimate gravity specifications of trade flows and non-count data models more generally. Some papers also report results based on the Negative Binomial estimator, which is more general and encompasses the Poisson assumption as a special case. This note shows that the Negative Binomial estimator is inappropriate when applied to a continuous dependent variable which unit choice is arbitrary, because estimates artificially depend on that choice

Keywords: Pseudo-maximum likelihood methods; negative binomial estimator; Poisson regression; gamma PML (search for similar items in EconPapers)
JEL-codes: C13 C21 F10 (search for similar items in EconPapers)
Pages: 16 pages
Date: 2010-11
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (23)

Downloads: (external link)
https://hal.science/halshs-00544129 (application/pdf)

Related works:
Working Paper: Scale-dependence of the Negative Binomial Pseudo-Maximum Likelihood Estimator (2010)
Working Paper: Scale-dependence of the Negative Binomial Pseudo-Maximum Likelihood Estimator (2010)
Working Paper: Scale-dependence of the Negative Binomial Pseudo-Maximum Likelihood Estimator (2010)
Working Paper: Scale-dependence of the Negative Binomial Pseudo-Maximum Likelihood Estimator (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mse:cesdoc:10092

Access Statistics for this paper

More papers in Documents de travail du Centre d'Economie de la Sorbonne from Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne Contact information at EDIRC.
Bibliographic data for series maintained by Lucie Label ().