Statistics Seminar: STA 290
Thursday, October 25th, 2012 at 4.10pm, MSB 1147 (Colloquium Room)
Refreshments 3:30pm, prior to seminar in MSB 4110 (Statistics Lounge)
Speaker: Colin Cameron (Dept. Economics, UC Davis)
Title: Robust Inference with Dyadic Data: with Applications to Country-pair International Trade
Abstract: This paper considers inference with paired or dyadic data, such as cross-section and panel data on trade between two countries. Regression models with such data have a complicated pattern of error correlation. For example, errors for US-UK trade may be correlated with those for any other country pair that includes either the US or UK. The standard cluster-robust variance estimator or sandwich estimator for one-way clustering (Liang and Zeger (1986), Arellano (1987)) is inadequate. The two-way cluster robust estimator (Miglioretti and Heagerty (2006), Cameron, Gelbach and Miller (2011) also understates standard errors. The talk will review these earlier papers on cluster-robust inference as well as inference for dyadic data.
Joint paper with Doug Miller (UC Davis)