*! version 1.0 28march2018
help twgravity (Koen Jochmans and Vincenzo Verardi)

Title

twgravity --

Method-of-moment estimators from Jochmans (2017) for estimating exponential-regression models with two-way fixed effects from a cross-section of data on dyadic interactions

Syntax

twgravity varlist [if] [in] , indm(varname) indn(varname) model(GMM1|GMM2) [initial(vector)]

Model
indm(varname) Specifies the first agent in the dyad (akin to a panel identifier)

indn(varname) Specifies the second agent in the dyad (akin to time identifier)

model(GMM1|GMM2) Specifies estimator to use - see Jochmans and Verardi (2019)

initial(vector) Specifies a column vector of initial values for coefficients

Description

twgravity computes Jochmans' (2017) method-of-moment estimators in a computationally-efficient manner.

Examples

Download Log of gravity.dta at: "http://personal.lse.ac.uk/tenreyro/regressors.zip"

. use "Log of Gravity.dta"

. twgravity trade ldist border comlang colony comfrt_wto , indm( s1_im ) indn( s2_ex ) model(GMM2)

Authors

Koen Jochmans, University of Cambridge; and Vincenzo Verard, FNRS-UNamur

Also see

Help: twexp (if installed)

References

Jochmans, K. and V. Verardi (2019). twexp and twgravity: Estimating exponential regression models with two-way fixed effects.
Mimeo.

Jochmans, K. (2017), Two-way models for gravity, Review of Economics and Statistics 99: 478-485