Multi-way clustering estimation of standard errors in gravity models

C-Tier
Journal: Economics Letters
Year: 2015
Volume: 134
Issue: C
Pages: 144-147

Authors (2)

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 paper analyzes the consequences of ignoring the multi-indexed structure with cross-sectional and panel-data gravity models of bilateral trade for inference. We estimate log-linear and generalized-linear gravity equations of bilateral trade. Ignoring multi-way clustering in the data at hand leads to misleading inference regarding the relevance of preferential trade-agreement memberships of different kinds.

Technical Details

RePEc Handle
repec:eee:ecolet:v:134:y:2015:i:c:p:144-147
Journal Field
General
Author Count
2
Added to Database
2026-01-25