| 来源类型 | Discussion paper |
| 规范类型 | 论文 |
| 来源ID | DP5296 |
| DP5296 The Public Pay Gap in Britain: Small Differences That (Don?t?) Matter | |
| Hélène Turon; Fabien Postel-Vinay | |
| 发表日期 | 2005-10-23 |
| 出版年 | 2005 |
| 语种 | 英语 |
| 摘要 | Although economists have long been aware of Jensen's inequality, many econometric applications have neglected an important implication of it: the standard practice of interpreting the parameters of log-linearized models estimated by ordinary least squares as elasticities can be highly misleading in the presence of heteroskedasticity. This paper explains why this problem arises and proposes an appropriate estimator. Our criticism of conventional practices and the solution we propose extends to a broad range of economic applications where the equation under study is log-linearized. We develop the argument using one particular illustration, the gravity equation for trade, and apply the proposed technique to provide new estimates of this equation. We find significant differences between estimates obtained with the proposed estimator and those obtained with the traditional method. |
| 主题 | International Macroeconomics ; International Trade and Regional Economics |
| 关键词 | Elasticities Gravity equation Heteroskedasticity Jensen's inequality Poisson regression |
| URL | https://cepr.org/publications/dp5296 |
| 来源智库 | Centre for Economic Policy Research (United Kingdom) |
| 资源类型 | 智库出版物 |
| 条目标识符 | http://119.78.100.153/handle/2XGU8XDN/534171 |
| 推荐引用方式 GB/T 7714 | Hélène Turon,Fabien Postel-Vinay. DP5296 The Public Pay Gap in Britain: Small Differences That (Don?t?) Matter. 2005. |
| 条目包含的文件 | 条目无相关文件。 | |||||
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