Confidence intervals using robust PPML-standard errors are too small in cross-section gravity models. Monte Carlo simulations
indicate approximately correct coverage rates of jackknife and percentile bootstrap confidence intervals. Those of constrained
PPML estimates are reliable, if trade costs are non-stochastic.
Keywords:Poisson pseudo maximum likelihood estimation, Confidence interval, Heteroskedasticity-robust inferen
Research group:Industrial, Innovation and International Economics
