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Latent Unbalancedness in Three-Way Gravity Models

Daniel Czarnowske and Amrei Stammann

Papers from arXiv.org

Abstract: Many panel data sets used for pseudo-poisson estimation of three-way gravity models are implicitly unbalanced because uninformative observations are redundant for the estimation. We show with real data as well as simulations that this phenomenon, which we call latent unbalancedness, amplifies the inference problem recently studied by Weidner and Zylkin (2021).

Date: 2022-03
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