The entity (dyad) fixed effects model can be represented by: Bilateral Trade = a + BAlliance...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
The entity (dyad) fixed effects model can be represented by: Bilateral Trade = a₁ + B₁Alliance + other variables + ₁ where a, captures the dyad fixed effect. Could a favorable trading geography (for example the countries are not divided by mountains) be captured by the dyad fixed effect? What about a history of commerce between the two countries? Explain briefly. Distance disappeared in the entity fixed effects regression. What is the reason for that? We see a large difference in the coefficient on Alliance in the entity fixed effects model and the pooled OLS. There can be many reasons we observe this. What is the common term used t hese reasons? The entity (dyad) fixed effects model can be represented by: Bilateral Trade = a₁ + B₁Alliance + other variables + ₁ where a, captures the dyad fixed effect. Could a favorable trading geography (for example the countries are not divided by mountains) be captured by the dyad fixed effect? What about a history of commerce between the two countries? Explain briefly. Distance disappeared in the entity fixed effects regression. What is the reason for that? We see a large difference in the coefficient on Alliance in the entity fixed effects model and the pooled OLS. There can be many reasons we observe this. What is the common term used t hese reasons?
Expert Answer:
Answer rating: 100% (QA)
Step 11 The entity fixed effects model controls for unobserved dyadspecific factors that may affect ... View the full answer
Related Book For
Microeconomics An Intuitive Approach with Calculus
ISBN: 978-0538453257
1st edition
Authors: Thomas Nechyba
Posted Date:
Students also viewed these accounting questions
-
A linear dynamical system can be represented by the equations Dx / dt = A(t)x(t) + B(t)u(t), y(t) = C(t)x(t) + D(t)u(t), where A is an n n variable matrix, B is an n r variable matrix, C is an m n...
-
A satellite single-axis attitude control system can be represented by the block diagram in Figure CP2.5. The variables k, a, and b are controller parameters, and J is the spacecraft moment of...
-
A system can be represented by the state vector differential equation of Equation (3.16), where Find the characteristic roots of the system. 2 0
-
After 1 0 0 0 B . C . E . trade in Greece allowed for the accumulation of wealth by Kings Aristoi Farmers Foreigners
-
Raphael Restaurant is considering the purchase of a $9,000 souffl maker. The souffl maker has an economic life of five years and will be fully depreciated by the straight-line method. The machine...
-
Explain the ethical and social responsibility issues facing managers today.
-
Petitioner Christy Brzonkala met respondents Antonio Morrison and James Crawford at a campus party at Virginia Polytechnic Institute (Virginia Tech), where they were all students. At the party, the...
-
Financial information for Gallup Inc. is presented below. Instructions Prepare a schedule showing a horizontal analysis for 2014 using 2013 as the baseyear. Current assets Plant assets (net) Current...
-
What is the binary pattern represented by the following Differential Manchester encoding:
-
A month has elapsed since Precision Computer Centre's year-end. Tony Freedman will use four specialized journals for recording business transactions in the month of September. To assist you in...
-
Do changes in assets and liabilities, Net cash provided (used) by operating activities, Investment activities, Net Cash provided (used) for financing activities, net change in cash and cash...
-
Describe how World War I affected two of the four cities. Describe how World War II affected the other two of the four cities The cities are New Orleans, Paris, Soweto, Shanghai
-
In general terms, describe the Market for EV Battery- This is the General Market in which the product would be sold and existing products, and sales trend in the past five years.
-
A. Explain how height-by-age can be used to assess quality of life. (10 marks) B. What difficulties result from using height-by-age as an indicator of quality of life? (20 marks) This question is...
-
What has happened to the unemployment rate in the u.s 2008 through 2002? To what would you attribute?how would this information be reflected on our production possibilities curve?
-
Citizens United v. Federal Election Commission (2010) -What are your general reactions to and critique of the Court's opinion? .Are there any aspects of the ruling that you especially agree or...
-
You make payments of $2500 quarterly for 10 years to your bank. Assuming an interest rate is 3% per year, compounded monthly, A. What is the effective quarterly interest rate? B. What is the...
-
Sheldon and Leonard had a million-dollar idea. In order to make it happen, they have to do special research first. Only Kripke can help them in this matter. But Kripke is known to be the first-class...
-
Rating Movies on a Numerical Scale: My wife and I often go to movies and afterwards assign a rating ranging from0 to 10 to the movie we saw. A: Suppose we go to see a double feature, first Terminator...
-
Suppose you and your friend Bob are in the business of producing baseball cards. A: Both of you face the same production technology which has the property that the marginal product of labor initially...
-
In this exercise, you will prove that, as long as tastes satisfy rationality, continuity and monotoni city, there always exists a well-defined indifference map (and utility function) that can...
-
Are there any activities in a family that you believe should be allocated by a market? What characteristics do those activities have?
-
What is the difference between socialism in theory and socialism in practice?
-
Into what three sectors are market economies generally broken up?
Study smarter with the SolutionInn App