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Event count estimation

Author

Listed:
  • Laszlo Balazsi
  • Felix Chan
  • Laszlo Matyas

Abstract

This paper proposes a new estimation procedure called Event Count Estimator (ECE). The estimator is straightforward to implement and is robust against outliers, censoring and ‘excess zeros’ in the data. The paper establishes asymptotic properties of the new estimator and the theoretical results are supported by several Monte Carlo experiments. Monte Carlo experiments also show that the estimator has reasonable properties in moderate to large samples. As such, the cost of trading efficiency for robustness here is negligible from an applied viewpoint. The practical usefulness of the new estimator is demonstrated via an empirical application of the Gravity Model of trade.

Suggested Citation

  • Laszlo Balazsi & Felix Chan & Laszlo Matyas, 2022. "Event count estimation," Econometric Reviews, Taylor & Francis Journals, vol. 41(2), pages 147-176, February.
    • Handle: RePEc:taf:emetrv:v:41:y:2022:i:2:p:147-176
    DOI: 10.1080/07474938.2020.1862505
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    References listed on IDEAS

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    1. Laszlo Matyas (ed.), 2017. "The Econometrics of Multi-dimensional Panels," Advanced Studies in Theoretical and Applied Econometrics, Springer, number 978-3-319-60783-2.
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    6. Konya, Laszlo & Matyas, Laszlo & Harris, Mark, 2011. "GATT/WTO membership does promote international trade after all – Some new empirical evidence," MPRA Paper 34978, University Library of Munich, Germany, revised 20 Nov 2011.
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