GRAVITY MODEL HELP

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christy313
Posts: 1
Joined: Thu Mar 01, 2012 8:36 pm

GRAVITY MODEL HELP

Postby christy313 » Thu Mar 01, 2012 9:21 pm

I have data for a gravity model - distance is one of the most important variables, yet since it is constant between countries, the equation is coming up as "near singular matrix". Do you know how to solve? Thanks in advance.
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wjgatt
Posts: 30
Joined: Fri Jan 27, 2012 3:52 am

Re: GRAVITY MODEL HELP

Postby wjgatt » Mon Mar 12, 2012 8:05 am

Are you estimating the equation across time or across trading partners? If the former then your equation does not constitute a gravity model.
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