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Gravity Model Specification and Estimation: Revisited

Kalirajan, Kaliappa

Description

The gravity model is one of the most frequently estimated empirical relationships in economics. However, the most commonly used form of the relationship is not correctly specified. This article discusses the specific sources of imprecision in modelling and estimation of gravity equations and suggests a method to correct the specification bias.

CollectionsANU Research Publications
Date published: 2008
Type: Journal article
URI: http://hdl.handle.net/1885/28625
Source: Applied Economics Letters
DOI: 10.1080/13504850600993499

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