Gravity models are used to explain bilateral flows related to the sizes of bilateral partners, a measure of distance between them and other influences on interaction costs. The underlying idea is rather simple. The greater the masses of two bodies and the smaller the distance between them, the stronger their attraction. This concept is applied to several research topics such as trade, migration or foreign direct investment. Even though their basic idea is rather simple, gravity models can become complex regarding the choice of models or estimation methods. As especially for gravity beginners it is difficult to get an overview of the different methods and implement them in R, the package provides a wrapper of different standard estimation methods for gravity models. By considering the descriptions and codes of the estimation methods, users get a comprehensive and application-oriented overview of the different methods, see which method may be suitable for a certain research question or type of data and extend the code available to their research projects. The package contains two types of estimation methods: those estimating gravity models in their log-log form, such as Ordinary Least Squares (OLS), Fixed Effects, Double Demeaning (DDM), Bonus vetus OLS with simple averages (BVU) and with GDP-weights (BVW), Structural Iterated Least Squares (SILS) and Tetrads. These methods are partly complex to understand and program and thus a comparison of them is not straightforward, wherefore the package aims at easing an overview of the different methods combined with a direct application. A second type of estimation methods utilizes the gravity model in its multiplicative form with a log-link and different families of distributions. They are relatively easy to compute and added for completeness and contain the methods Poisson Pseudo Maximum Likelihood (PPML), Gamma Pseudo Maximum Likelihood (GPML), Negative Binomial Pseudo Maximum Likelihood (NBPML), and Nonlinear Least Squares (NLS). The functions all estimate gravity models, but they differ in whether they estimate them in their multiplicative or additive form, their requirements with respect to data, their handling of Multilateral Resistance terms as well as their possibilities concerning the inclusion of unilateral independent variables. Therefore, they normally lead to different estimation results. We refer the user to the Gravity Cookbook website (
|Author||Anna-Lena Woelwer <[email protected]>, Jan Pablo Burgard <[email protected]>, Martin Bresslein <[email protected]>|
|Date of publication||2017-11-14 21:20:54 UTC|
|Maintainer||Anna-Lena Woelwer <[email protected]>|
|Package repository||View on CRAN|
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