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1. Verfasser: Sanders, Bas
Format: Preprint
Veröffentlicht: 2025
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Online-Zugang:https://arxiv.org/abs/2505.11967
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author Sanders, Bas
author_facet Sanders, Bas
contents Economists use quantitative trade and spatial models to make counterfactual predictions. Because such predictions often inform policy decisions, it is important to communicate the uncertainty surrounding them. Three key challenges arise in this setting: the data are dyadic and exhibit complex dependence; the number of interacting units is typically small; and counterfactual predictions depend on the data in two distinct ways-through the estimation of structural parameters and through their role as inputs into the model's counterfactual equilibrium. I address these challenges by proposing a new Bayesian bootstrap procedure tailored to this context. The method is simple to implement and provides both finite-sample Bayesian and asymptotic frequentist guarantees. Revisiting the results in Waugh (2010), Caliendo and Parro (2015), and Artuç et al. (2010) illustrates the practical advantages of the approach.
format Preprint
id arxiv_https___arxiv_org_abs_2505_11967
institution arXiv
publishDate 2025
record_format arxiv
spellingShingle A New Bayesian Bootstrap for Quantitative Trade and Spatial Models
Sanders, Bas
Econometrics
Economists use quantitative trade and spatial models to make counterfactual predictions. Because such predictions often inform policy decisions, it is important to communicate the uncertainty surrounding them. Three key challenges arise in this setting: the data are dyadic and exhibit complex dependence; the number of interacting units is typically small; and counterfactual predictions depend on the data in two distinct ways-through the estimation of structural parameters and through their role as inputs into the model's counterfactual equilibrium. I address these challenges by proposing a new Bayesian bootstrap procedure tailored to this context. The method is simple to implement and provides both finite-sample Bayesian and asymptotic frequentist guarantees. Revisiting the results in Waugh (2010), Caliendo and Parro (2015), and Artuç et al. (2010) illustrates the practical advantages of the approach.
title A New Bayesian Bootstrap for Quantitative Trade and Spatial Models
topic Econometrics
url https://arxiv.org/abs/2505.11967