Fitting exponential regression models with two-way fixed effects

Koen Jochmans and Vincenzo Verardi

Stata Journal, 2020, vol. 20, issue 2, 468-480

Abstract: In this article, we introduce the commands twexp and twgravity, which implement the estimators developed in Jochmans (2017, Review of Economics and Statistics 99: 478–485) for exponential regression models with two-way fixed effects. twexp is applicable to generic n × m panel data. twgravity is written for the special case where the dataset is a cross-section on dyadic interactions between n agents. A prime example is cross-sectional bilateral trade data, where the model of interest is a gravity equation with importer and exporter effects. Both twexp and twgravity can deal with data where n and m are large, that is, where there are many fixed effects. These commands use Mata and are fast to execute.

Keywords: twexp; twgravity; exponential regression; gravity model; panel data; two-way fixed effects (search for similar items in EconPapers)
Date: 2020
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Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:tsj:stataj:v:20:y:2019:i:2:p:468-480

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DOI: 10.1177/1536867X20931006

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