Gravity model specification and estimation: revisited

Kaliappa Kalirajan ()

Applied Economics Letters, 2008, vol. 15, issue 13, 1037-1039

Abstract: The gravity model is one of the most frequently estimated empirical relationships in economics. However, the most commonly used form of the relationship is not correctly specified. This article discusses the specific sources of imprecision in modelling and estimation of gravity equations and suggests a method to correct the specification bias.

Date: 2008
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DOI: 10.1080/13504850600993499

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