Fitting exponential regression models with two-way fixed effects

• Autores: Koen Jochmans, Vincenzo Verardi
• Localización: The Stata journal, ISSN 1536-867X, Vol. 20, Nº. 2, 2020, págs. 468-480
• Idioma: inglés
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• Resumen

  • In this article, we introduce the commands twexp and twgravity, which implement the estimators developed in Jochmans (2017, Review of Economics and Statistics 99: 478–485) for exponential regression models with two-way fixed effects. twexp is applicable to generic n × m panel data. twgravity is written for the special case where the dataset is a cross-section on dyadic interactions between n agents. A prime example is cross-sectional bilateral trade data, where the model of interest is a gravity equation with importer and exporter effects. Both twexp and twgravity can deal with data where n and m are large, that is, where there are many fixed effects. These commands use Mata and are fast to execute.