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  • classical assumptions on PPML


    I am studying the impact of economic integration on FTAs ​​and RTAs using 3 dummy variables to measure trade creation n trade diversion
    is it true that there is no need for classical assumptions in PPML? since what I have learned so far is only regression with OLS
    is there anything that needs to be tested after estimating with PPML especially the fixed effect
    does anyone know why a sample of trade before and after the implementation of the FTA is needed when we want to test the impact after the formation of the FTA because trade before the FTA will only be represented with a value of 0 in the dummy variable
    thanks for anyone who can answer and give a reference

  • #2
    https://www.statalist.org/forums/for...ailable-in-ssc

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