A note on the proper econometric specification of the gravity equation

Abstract

This paper sheds some light on the problems associated with random effects gravity approaches. Arguments for the superiority of a fixed effects model are given both along intuitive and econometric lines based on a Hausman test.  2000 Elsevier Science S.A. All rights reserved.

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@inproceedings{Egger1999ANO, title={A note on the proper econometric specification of the gravity equation}, author={Peter Egger}, year={1999} }