The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models

This article shows that the Poisson Quasi-Maximum Likelihood (QML) estimator applied to the gravity model produces estimates in which, summing across all partners, actual and estimated total trade flows are identical. Other methods such as OLS do not have this desirable property. Indeed, Poisson is...

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Main Authors:	Arvis, Jean-François, Shepherd, Ben
Format:	Journal Article
Language:	en_US
Published:	Taylor and Francis 2013
Subjects:	international trade gravity model Poisson Poisson Quasi-Maximum Likelihood estimator Quasi-Maximum Likelihood estimator QML
Online Access:	http://hdl.handle.net/10986/13363

id	okr-10986-13363
recordtype	oai_dc
spelling	okr-10986-133632021-04-23T14:03:08Z The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models Arvis, Jean-François Shepherd, Ben international trade gravity model Poisson Poisson Quasi-Maximum Likelihood estimator Quasi-Maximum Likelihood estimator QML This article shows that the Poisson Quasi-Maximum Likelihood (QML) estimator applied to the gravity model produces estimates in which, summing across all partners, actual and estimated total trade flows are identical. Other methods such as OLS do not have this desirable property. Indeed, Poisson is the only QML estimator that preserves total trade flows. This result is an additional reason for preferring Poisson as a workhorse gravity model estimator. 2013-05-10T17:38:01Z 2013-05-10T17:38:01Z 2012-08-28 Journal Article Applied Economics Letters 1350-4851 http://hdl.handle.net/10986/13363 en_US Applied Economics Letters;20(6) CC BY-NC-ND 3.0 IGO http://creativecommons.org/licenses/by-nc-nd/3.0/igo/ World Bank Taylor and Francis Publications & Research :: Journal Article Publications & Research
repository_type	Digital Repository
institution_category	Foreign Institution
institution	Digital Repositories
building	World Bank Open Knowledge Repository
collection	World Bank
language	en_US
topic	international trade gravity model Poisson Poisson Quasi-Maximum Likelihood estimator Quasi-Maximum Likelihood estimator QML
spellingShingle	international trade gravity model Poisson Poisson Quasi-Maximum Likelihood estimator Quasi-Maximum Likelihood estimator QML Arvis, Jean-François Shepherd, Ben The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models
relation	Applied Economics Letters;20(6)
description	This article shows that the Poisson Quasi-Maximum Likelihood (QML) estimator applied to the gravity model produces estimates in which, summing across all partners, actual and estimated total trade flows are identical. Other methods such as OLS do not have this desirable property. Indeed, Poisson is the only QML estimator that preserves total trade flows. This result is an additional reason for preferring Poisson as a workhorse gravity model estimator.
format	Journal Article
author	Arvis, Jean-François Shepherd, Ben
author_facet	Arvis, Jean-François Shepherd, Ben
author_sort	Arvis, Jean-François
title	The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models
title_short	The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models
title_full	The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models
title_fullStr	The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models
title_full_unstemmed	The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models
title_sort	poisson quasi-maximum likelihood estimator : a solution to the “adding up” problem in gravity models
publisher	Taylor and Francis
publishDate	2013
url	http://hdl.handle.net/10986/13363
_version_	1764423311808266240

The Poisson Quasi-Maximum Likelihood Estimator : A Solution to the “Adding Up” Problem in Gravity Models

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