Aggregravity: estimating gravity models from aggregate data

Badinger, Harald and Crespo Cuaresma, Jesus ORCID: https://orcid.org/0000-0003-3244-6560 (2015) Aggregravity: estimating gravity models from aggregate data. Applied Economics, 47 (20). pp. 2119-2126. ISSN 0003-6846

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Abstract

This paper considers alternative methods to estimate econometric models based on bilateral data when only aggregate information on the dependent variable is available. Such methods can be used to obtain an indication of the sign and magnitude of bilateral model parameters and, more importantly, to decompose aggregate into bilateral data, which can then be used as proxy variables in further empirical analysis. We perform a Monte Carlo study and carry out a simple real world application using intra-EU trade and capital flows, showing that the methods considered work reasonably well and are worthwhile being considered in the absence of bilateral data. (authors' abstract)

Item Type:	Article
Additional Information:	This is an Accepted Manuscript of an article published by Taylor & Francis in Applied Economics on 20 Jan 2015, available online: http://www.tandfonline.com/doi/abs/10.1080/00036846.2014.1002903
Keywords:	Aggregation / gravity equations
Classification Codes:	JEL C13, F14, F17
Divisions:	Departments > Volkswirtschaft > Internationale Wirtschaft Departments > Volkswirtschaft > Makroökonomie
Version of the Document:	Accepted for Publication
Variance from Published Version:	Minor
Depositing User:	Elena Simukovic
Date Deposited:	06 May 2015 11:10
Last Modified:	09 Sep 2020 06:13
Related URLs:	Publisher http://epub.wu.ac.at/4295/
FIDES Link:	https://bach.wu.ac.at/d/research/results/69554/
URI:	https://epub.wu.ac.at/id/eprint/4530

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