Cross-sectional dependence model specifications in a static trade panel data setting

Beschreibung

The focus is on cross-sectional dependence in panel trade flow models. We propose alternative specifications for modeling time invariant factors such as socio-cultural indicator variables, e.g., common language and currency. These are typically treated as a source of heterogeneity eliminated using fixed effects transformations, but we find evidence of cross-sectional dependence after eliminating country-specific effects. These findings suggest use of alternative simultaneous dependence model specifications that accommodate cross-sectional dependence, which we set forth along with Bayesian estimation methods. Ignoring cross-sectional dependence implies biased estimates from panel trade flow models that rely on fixed effects.

Zeitraum	28 Aug. 2018 → 31 Aug. 2018
Ereignistitel	58th Congress of the ERSA
Veranstaltungstyp	Keine Angaben
Bekanntheitsgrad	International