Review of Economics and Statistics
0034-6535
1530-9142
Mỹ
Cơ quản chủ quản: MIT Press Journals , MIT PRESS
Lĩnh vực:
Social Sciences (miscellaneous)Economics and Econometrics
Phân tích ảnh hưởng
Thông tin về tạp chí
The Review of Economics and Statistics is a 100-year-old general journal of applied (especially quantitative) economics. Edited at the Harvard Kennedy School, the Review has published some of the most important articles in empirical economics. From time to time, the Review also publishes collections of papers or symposia devoted to a single topic of methodological or empirical interest.
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The Log of Gravity Abstract
Although economists have long been aware of Jensen's inequality, many econometric applications have neglected an important implication of it: under heteroskedasticity, the parameters of log-linearized models estimated by OLS lead to biased estimates of the true elasticities. We explain why this problem arises and propose an appropriate estimator. Our criticism of conventional practices and the proposed solution extend to a broad range of applications where log-linearized equations are estimated. We develop the argument using one particular illustration, the gravity equation for trade. We find significant differences between estimates obtained with the proposed estimator and those obtained with the traditional method.
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