Economics at your fingertips  

Using the gravity equation to differentiate among alternative theories of trade: another look

Boriss Siliverstovs and Dieter Schumacher

Applied Economics Letters, 2007, vol. 14, issue 14, 1065-1073

Abstract: This study compares two alternative approaches-the traditional ordinary least square (OLS) and the Poisson Quasi Maximum Likelihood (PQML) procedures-to estimation of the home market effects for the heterogeneous, the reference priced and the homogeneous goods in the gravity model derived in Feenstra et al. (2001). Despite our findings that the PQML estimation results oftentimes (significantly) differ from those obtained by the OLS procedure, both estimation procedures largely lead to the qualitatively similar conclusions on the existence of the home market effect for the different types of goods with several exceptions.

Date: 2007
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1) Track citations by RSS feed

Downloads: (external link) ... 40C6AD35DC6213A474B5 (text/html)
Access to full text is restricted to subscribers.

Related works:
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:

Ordering information: This journal article can be ordered from

DOI: 10.1080/13504850600706446

Access Statistics for this article

Applied Economics Letters is currently edited by Anita Phillips

More articles in Applied Economics Letters from Taylor & Francis Journals
Bibliographic data for series maintained by Chris Longhurst ().

Page updated 2020-10-27
Handle: RePEc:taf:apeclt:v:14:y:2007:i:14:p:1065-1073