SEOUL NATIONAL UNIVERSITY · CENTER FOR LAW & ECONOMICS
Center for Law & Economics, Seoul National UniversityCENTER FOR LAW & ECONOMICS
ECONOMICS · RESEARCH RECORD
GlobalTrade

DP21998 PPML and Heavy-Tailed Trade and Factor Flows: Why Standard Inference Fails and How to Fix It

AT A GLANCE

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This working paper examines statistical inference with Poisson pseudo-maximum likelihood in gravity models when trade and factor flows have heavy tails.

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