Dear all,
I am currently estimating a partial equilibrium gravity model using the ppml command in Stata. My focus is on modeling a counterfactual scenario in which the EU applies a carbon tariff on imports from the rest of the world. I am utilizing the CEPII Gravity and TradeProd datasets for bilateral trade flows, gravity variables (such as distance, contiguity, colonial ties, and common language), and both preferential and MFN tariffs at an aggregated industry-level. I am trying to determine trade elasticities for selected countries and to calculate the potential changes in trade flows using these elasticities along with the higher tariff rates (calculated with the help of IO tables). However, I am a bit stuck because I don't know how I need to proceed.
This is my ppml command:
ppml trade EXPORTER_FE* IMPORTER_FE* lndist contig comlang_off col45 ln_tariff fta_wto if industry == "Machines (29t33)"
And this should be the command to get the trade elasticity for each industry:
scalar sigma_Machines = -_b[ln_tariff]
display sigma_Machines
But how can I do that for each country, save the elasticities, and use them for my new tariff data to get the new trade flows?
Thank you in advance for your help!
Kind regards,
Katharina
I am currently estimating a partial equilibrium gravity model using the ppml command in Stata. My focus is on modeling a counterfactual scenario in which the EU applies a carbon tariff on imports from the rest of the world. I am utilizing the CEPII Gravity and TradeProd datasets for bilateral trade flows, gravity variables (such as distance, contiguity, colonial ties, and common language), and both preferential and MFN tariffs at an aggregated industry-level. I am trying to determine trade elasticities for selected countries and to calculate the potential changes in trade flows using these elasticities along with the higher tariff rates (calculated with the help of IO tables). However, I am a bit stuck because I don't know how I need to proceed.
This is my ppml command:
ppml trade EXPORTER_FE* IMPORTER_FE* lndist contig comlang_off col45 ln_tariff fta_wto if industry == "Machines (29t33)"
And this should be the command to get the trade elasticity for each industry:
scalar sigma_Machines = -_b[ln_tariff]
display sigma_Machines
But how can I do that for each country, save the elasticities, and use them for my new tariff data to get the new trade flows?
Thank you in advance for your help!
Kind regards,
Katharina
