Estimation of structural gravity quantile regression models

Badi H. Baltagi, Peter Egger

Research output: Contribution to journalArticlepeer-review

19 Scopus citations


This paper demonstrates that observable trade cost measures in logs are not linearly related to the overall log trade costs nor to the conditional mean of log bilateral trade flows. This is shown using a simultaneous quantiles regression model and data on bilateral exports in 2008. This is modeled as a function of geographical, cultural, and historical observables and a host of unobservable trade cost measures in a structural model of bilateral trade. In this model, trade costs differ not only statistically but also quantitatively across the quantiles of the conditional distribution of bilateral exports. As a consequence, comparative static effects of these trade costs vary as well.

Original languageEnglish (US)
Pages (from-to)5-15
Number of pages11
JournalEmpirical Economics
Issue number1
StatePublished - Feb 1 2016


  • Gravity models
  • Quantile regression
  • Structural estimation

ASJC Scopus subject areas

  • Statistics and Probability
  • Mathematics (miscellaneous)
  • Social Sciences (miscellaneous)
  • Economics and Econometrics


Dive into the research topics of 'Estimation of structural gravity quantile regression models'. Together they form a unique fingerprint.

Cite this