Why Do Estimates of the Emu Effect on Trade Vary so Much?

27 Pages Posted: 26 Sep 2016 Last revised: 19 Jun 2023

See all articles by Andrew Kenan Rose

Andrew Kenan Rose

University of California - Haas School of Business; NUS Business School; National Bureau of Economic Research (NBER); Centre for Economic Policy Research (CEPR)

Multiple version iconThere are 2 versions of this paper

Date Written: September 2016

Abstract

Larger data sets, with more countries and a longer span of time, exhibit systematically larger effects of European monetary union on trade. I establish this stylized fact with meta-analysis and confirm it by estimating a plain-vanilla gravity model. I then explain this finding by examining systematic biases in “multilateral resistance to trade” manifest in time-varying country fixed effects; bias grows as the sample is truncated by dropping small poor countries.

Suggested Citation

Rose, Andrew Kenan and Rose, Andrew Kenan, Why Do Estimates of the Emu Effect on Trade Vary so Much? (September 2016). NBER Working Paper No. w22678, Available at SSRN: https://ssrn.com/abstract=2843411

Andrew Kenan Rose (Contact Author)

University of California - Haas School of Business ( email )

Berkeley, CA 94720
United States
510-642-6609 (Phone)
510-642-4700 (Fax)

HOME PAGE: http://faculty.haas.berkeley.edu/arose

NUS Business School ( email )

15 Kent Ridge Dr
Singapore, 119245
Singapore

National Bureau of Economic Research (NBER)

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Centre for Economic Policy Research (CEPR)

London
United Kingdom

Do you have negative results from your research you’d like to share?

Paper statistics

Downloads
31
Abstract Views
348
PlumX Metrics