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GRAVITY MODEL HELP

Posted: Thu Mar 01, 2012 9:21 pm
by christy313
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.

Re: GRAVITY MODEL HELP

Posted: Mon Mar 12, 2012 8:05 am
by wjgatt
Are you estimating the equation across time or across trading partners? If the former then your equation does not constitute a gravity model.