Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Estimation and Inference in Econometrics

We develop a monopolistically competitive model of trade with firm heterogeneityâ€”in terms of productivity differencesâ€”and endogenous differences in the "toughness" of competition across marketsâ€”in terms of the number and average productivity of competing firms. We analyse how these features vary across markets of different size that are not perfectly integrated through trade; we then study the effects of different trade liberalization policies. In our model, market size and trade affect the toughness of competition, which then feeds back into the selection of heterogeneous producers and exporters in that market. Aggregate productivity and average mark-ups thus respond to both the size of a market and the extent of its integration through trade (larger, more integrated markets exhibit higher productivity and lower mark-ups). Our model remains highly tractable, even when extended to a general framework with multiple asymmetric countries integrated to different extents through asymmetric trade costs. We believe this provides a useful modelling framework that is particularly well suited to the analysis of trade and regional integration policy scenarios in an environment with heterogeneous firms and endogenous mark-ups.

Market Size, Trade, and Productivity

This chapter focuses on the estimation and interpretation of gravity equations for bilateral trade. This necessarily involves a careful consideration of the theoretical underpinnings since it has become clear that naive approaches to estimation lead to biased and frequently misinterpreted results. There are now several theory-consistent estimation methods and we argue against sole reliance on any one method and instead advocate a toolkit approach. One estimator may be preferred for certain types of data or research questions but more often the methods should be used in concert to establish robustness. In recent years, estimation has become just a first step before a deeper analysis of the implications of the results, notably in terms of welfare. We try to facilitate diffusion of best-practice methods by illustrating their application in a step-by-step cookbook mode of exposition.

/pdf/gravity-equations-workhorse-toolkit-and-cookbook-1oadwbzcqo.pdf

Gravity Equations: Workhorse,Toolkit, and Cookbook

Thank you very much for reading input output analysis foundations and extensions. As you may know, people have search hundreds times for their chosen readings like this input output analysis foundations and extensions, but end up in infectious downloads. Rather than reading a good book with a cup of coffee in the afternoon, instead they are facing with some malicious virus inside their desktop computer.

Input Output Analysis Foundations And Extensions

discipline. 3 I begin my search for an explanation with (liberal) intergovernmentalism, the most prominent and promising rationalist account of the major turning points in the history of European integration. This perspective accounts plausibly for most of the enlargement preferences of the member states and explains why the association of Central and Eastern European countries to the European Community (EC) was the initial outcome of the bargaining process among them. It fails, however, to account for the Community’s decision to go beyond association and offer these countries full membership. This puzzle is solved through a sociological perspective in which enlargement is understood as the expansion of international community. If the EU is conceived of

/pdf/the-community-trap-liberal-norms-rhetorical-action-and-the-cpu7xlnnmz.pdf

The Community Trap: Liberal Norms, Rhetorical Action, and the Eastern Enlargement of the European Union

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.

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

In this study we compare the traditional OLS approach applied to the
log-linear form of the gravity model with the Poisson Quasi Maximum
Likelihood (PQML) estimation procedure applied to the non-linear
multiplicative specification of the gravity model. We use the trade
flows for all products, for all manufacturing products as well as
for manufacturing products broken down by three-digit ISIC Rev.2
categories. We base our conclusions on the gravity model of
Bergstrand (Rev Econ Stat 71(1):143--153, 1989) for disaggregate
trade flows that allows us to investigate differences in
factor-proportions and home-market effects at the industry level. In
addition, we compare the effects of other explanatory variables such
as exporter and importer total income, distance, preferential trade
agreements, common border, historical ties, and common language on
the volume of trade. Our main conclusion is that both estimation
results as well as results of the regression mis-specification tests
provide supporting evidence for the PQML estimation approach over
the OLS estimation method.

/pdf/estimating-gravity-equations-to-log-or-not-to-log-225tvkxewr.pdf

Estimating gravity equations: to log or not to log?

The electrical conductivity of thin metal films.- Concepts to describe the surface influence.- Thin metal films on glass supports.- Studies of surface and growth processes.- Final remarks.

Surface Scattering Experiments With Conduction Electrons

Ostmitteleuropa auf dem Weg in die EU : Transformation, Verflechtung, Reformbedarf

What is the effect of terrorism and warfare on international trade? We answer this question examining bilateral trade flows between more than 200 countries over the period from 1960 to 1993. Applying an augmented gravity model that includes several measures of terrorism and large-scale violence, we find compelling evidence that terrorist actions reduce the volume of trade; a doubling in the number of terrorist incidents is associated with a decrease in bilateral trade by about 6 percent.

https://www.econstor.eu/bitstream/10419/18089/1/dp353.pdf

Dieter Schumacher

Papers

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

Estimating gravity equations: to log or not to log?

Surface Scattering Experiments With Conduction Electrons

Ostmitteleuropa auf dem Weg in die EU : Transformation, Verflechtung, Reformbedarf

Terrorism and trade