Dear all
I'm new here. I'm currently working on gravity model and would be glad if someone could help with 2 short questions
1- What are the shortcoming of a gravity model with few observations (1 importator, 2 exportators, one product, 20 years= 44 observations)
2- Can the rejection of good specification of ppml with the RESET TEST be explained by the sample size? Does it imply biaised elasticities?
Maybe these questions have been already discussed. I will be happy to be redirect to thoses discussions
Thanks a lot
Ariane
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