The Gravity Model: An Illustration of Structural Estimation as Calibration.

Dawkins, Srinivasan, and Whalley (“Calibration,” Handbook of Econometrics, 2001) propose that estimation is calibration. We illustrate their point by examining a leading econometric application in the study of international and interregional trade by Anderson and van Wincoop (“Gravity with Gravitas:...

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Publicado en:Economic Inquiry Vol. 46; no. 4; pp. 511 - 528
Autores principales: Balistreri, Edward J., Hillberry, Russell H.
Formato: Artículo
Publicado: Wiley-Blackwell October 2008
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Acceso en línea:Ver este registro en EBSCOhost
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        atl: The Gravity Model: An Illustration of Structural Estimation as Calibration.
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        au:
          Balistreri, Edward J.
          Hillberry, Russell H.
      su:
        Border trade
        Mathematical models
        Estimation theory
        Mathematical models of social sciences
        Calibration
      sug:
        subj:
          Border trade
          Mathematical models
          Estimation theory
          Mathematical models of social sciences
          Calibration
      keyword: Gravity models
      ab: Dawkins, Srinivasan, and Whalley (“Calibration,” Handbook of Econometrics, 2001) propose that estimation is calibration. We illustrate their point by examining a leading econometric application in the study of international and interregional trade by Anderson and van Wincoop (“Gravity with Gravitas: A Solution to the Border Puzzle,” American Economic Review, 2003). We replicate the econometric process and show it to be a calibration of a general equilibrium model. Our approach offers unique insights into structural estimation, and we highlight the importance of traditional calibration considerations when one uses econometric techniques to calibrate a model for comparative policy analysis. (JEL F10, CI 3, C60) Reprinted by permission of the publisher.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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