Hello everyone,
recently I'm researching on the gravity model using ppml estimator.
Unfortunately I'm facing a trouble with it so I'd like to ask some advice for it.
.
When I first do the ppml estimator, I used log(export) for dependent variable, and add fixed effects and policy variables.
And when I did the RESET test, most of the results' p-values were bigger than 0.05.
So I thought it would be okay to use the model.
However when I found the literature about ppml estimators in gravity model, most of it says that 'do not take a log for dependent variable'.
So I did ppml estimation with 'export' for dependent variable, and add fixed effects and policy variables.
However, the point is that when I did the RESET test, the most of the results' p-values were 0.000, 0.001, 0.0011 and so on, which are very small.
Therefore I have a question that is it okay to take a model, which uses 'export' for dependent variable and have a p-values of 0.001 or 0.0011.
Thank you so much
Best regards,
Sehee
recently I'm researching on the gravity model using ppml estimator.
Unfortunately I'm facing a trouble with it so I'd like to ask some advice for it.
.
When I first do the ppml estimator, I used log(export) for dependent variable, and add fixed effects and policy variables.
And when I did the RESET test, most of the results' p-values were bigger than 0.05.
So I thought it would be okay to use the model.
However when I found the literature about ppml estimators in gravity model, most of it says that 'do not take a log for dependent variable'.
So I did ppml estimation with 'export' for dependent variable, and add fixed effects and policy variables.
However, the point is that when I did the RESET test, the most of the results' p-values were 0.000, 0.001, 0.0011 and so on, which are very small.
Therefore I have a question that is it okay to take a model, which uses 'export' for dependent variable and have a p-values of 0.001 or 0.0011.
Thank you so much
Best regards,
Sehee
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