Estimating General Equilibrium Trade Policy Effects: GE PPML

James Anderson, Mario Larch and Yoto Yotov

No 2016-6, School of Economics Working Paper Series from LeBow College of Business, Drexel University

Abstract: We develop a simple estimation procedure for general equilibrium (GE) comparative static analysis of gravity models. Non-linear solvers of estimated models are replaced by (constrained) regressions. Applied economists can more readily generate results, with more intuition about the working of the model. We illustrate with a worldwide border removal application using the Poisson Pseudo-Maximum-Likelihood (PPML) estimator in STATA, iterated to deliver conditional and full general equilibrium responses. The method works by fully exploiting the combined properties of structural gravity and PPML. Our procedures readily extend to a wide class of general equilibrium production models.

Keywords: Structural Gravity; General Equilibrium Effects; Counterfactuals; Estimation (search for similar items in EconPapers)
JEL-codes: F10 F14 F16 (search for similar items in EconPapers)
Pages: 26 pages
Date: 2016-05-15
New Economics Papers: this item is included in nep-ecm and nep-int
References: Add references at CitEc
Citations: View citations in EconPapers (36)

Downloads: (external link)
https://drive.google.com/file/d/0BxRDnd8cEKndWF9YZ ... _kDSSkd_5XkGlALoPZnA Full text (application/pdf)

Related works:
Working Paper: Estimating General Equilibrium Trade Policy Effects: GE PPML (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ris:drxlwp:2016_006

Access Statistics for this paper

More papers in School of Economics Working Paper Series from LeBow College of Business, Drexel University Contact information at EDIRC.
Bibliographic data for series maintained by Richard C. Barnett ().