Aggregravity: estimating gravity models from aggregate data

C-Tier
Journal: Applied Economics
Year: 2015
Volume: 47
Issue: 20
Pages: 2119-2126

Authors (2)

Harald Badinger (WU Wirtschaftsuniversität Wien) Jesus Crespo Cuaresma (not in RePEc)

Score contribution per author:

0.503 = (α=2.01 / 2 authors) × 0.5x C-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

This article 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 analyses. 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.

Technical Details

RePEc Handle
repec:taf:applec:v:47:y:2015:i:20:p:2119-2126
Journal Field
General
Author Count
2
Added to Database
2026-01-24