Hi everyone!
I am researching for my thesis about the trade impact of non-tariff measures. For that, I am using the gravity model and the PPML estimator. However, I have some problems with it.
As I am using one exporter country and 50 importer countries, I have problems with the correct specification of importer fixed effects. When I include them in my model, several variables are omitted because they are captured by the fixed effect (I am using ppmlhdfe estimator). So, I was adviced about relaxing my importer fixed effects in order to get those omitted variables. However, it could be a mistake since I would be omitting the Multilateral Resistance mentioned in Anderson & Van Wincoop (2003). Searching more information about that, I found a paper by Nicita and Murina (2015) titled "Trading with conditions: The effect of sanitary and phytosanitary measures on the agricultural exports from low-income countries". In this paper, they do not show if they are including importer or exporter fixed effects (they only remarks that they use 2 digit fixed effects). Instead, they include a Multilateral Resistance variable which, I think, is substituting the importer or exporter fixed effects. So, I have some questions,
1) Is it correct to include a Multilateral Resistance variable instead of importer/exporter fixed effects? How can I get this variable in stata?
2) Does anybody read this paper? Could you explain me if the authors include exporter/importer fixed effects?
I attach a image with the results of that paper.
Pd: The study is about the impact of European measures on agricultural imports from low income countries in 2011 (cross sectional study)
Array
Related Posts with PPML with fixed effects
Calculating top and bottom 2.5%Hi everyone, I am trying to add 95% confidence intervals to a kdenstiy plot. I think I need to cacu…
Both fixed effect and first difference of some independent variables?Hi, I have a short panel data and after doing unit root ht test, I found that some of the independen…
Test the difference of coefficients? Hi guys, I need to examine the impacts of X on Raw Return and Alpha in two sub groups : outflow and…
Calculating skewness and kurtosis of monthly returnsHello all, I have a dataset with a firm identifying number (called "PERMNO"), a date variable ("dat…
xtqreg warning message: fitted values of the scale function are not positiveHi, I am running a quantile regression for panel data. I have 50 individuals and at least 500 obser…
Subscribe to:
Post Comments (Atom)
0 Response to PPML with fixed effects
Post a Comment