Fitting exponential regression models with two-way fixed effects

Koen Jochmans; Vincenzo Verardi

doi:10.1177/1536867X20931006

Fitting exponential regression models with two-way fixed effects

Koen Jochmans, Vincenzo Verardi

University of Namur

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Abstract

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.

Original language	English
Pages (from-to)	468-480
Number of pages	13
Journal	Stata Journal
Volume	20
Issue number	2
DOIs	https://doi.org/10.1177/1536867X20931006
Publication status	Published - 1 Jun 2020

Keywords

exponential regression
gravity model
panel data
st0604
twexp
twgravity
two-way fixed effects

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twexp_twgravity - stata

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title = "Fitting exponential regression models with two-way fixed effects",

abstract = "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.",

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author = "Koen Jochmans and Vincenzo Verardi",

note = "Funding Information: Koen Jochmans gratefully acknowledges financial support from the European Research Council through Starting Grant number 715787. Vincenzo Verardi gratefully acknowledges financial support from the FNRS. Publisher Copyright: {\textcopyright} StataCorp LLC 2020.",

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AU - Verardi, Vincenzo

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N2 - 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.

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Fitting exponential regression models with two-way fixed effects

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