Helpman, Melitz, and Rubinstein (2008)?HMR?present a rich theoretical model to study the determinants of bilateral trade flows across countries. The model is then empirically implemented through a two-stage estimation procedure. This note seeks to clarify some econometric aspects of the estimation approach used by HMR and explore the consequences of possible departures from the maintained distributional assumptions.

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June 2009     Paper Number CEPDP0935

Download PDF - Trading Partners and Trading Volumes: Implementing the Helpman-Melitz-Rubinstein Model Empirically

This CEP discussion paper is published under the centre's Trade programme.