Instruct: Identify the main and secondary category of Arxiv papers based on the titles and abstracts
Query: State Dependence and Unobserved Heterogeneity in the Extensive Margin of
  Trade   We study the role and drivers of persistence in the extensive margin of
bilateral trade. Motivated by a stylized heterogeneous firms model of
international trade with market entry costs, we consider dynamic three-way
fixed effects binary choice models and study the corresponding incidental
parameter problem. The standard maximum likelihood estimator is consistent
under asymptotics where all panel dimensions grow at a constant rate, but it
has an asymptotic bias in its limiting distribution, invalidating inference
even in situations where the bias appears to be small. Thus, we propose two
different bias-corrected estimators. Monte Carlo simulations confirm their
desirable statistical properties. We apply these estimators in a reassessment
of the most commonly studied determinants of the extensive margin of trade.
Both true state dependence and unobserved heterogeneity contribute considerably
to trade persistence and taking this persistence into account matters
significantly in identifying the effects of trade policies on the extensive
margin.

21
The categories of this paper are: adap-org
2
The categories of this paper are: math
16
The categories of this paper are: stat
28
The categories of this paper are: alg-geom
29
The categories of this paper are: funct-an
22
The categories of this paper are: chao-dyn
10
The categories of this paper are: q-bio
1
The categories of this paper are: cs
20
The categories of this paper are: acc-phys
8
The categories of this paper are: hep-ex
17
The categories of this paper are: q-fin
31
The categories of this paper are: ao-sci
15
The categories of this paper are: nucl-ex
0
The categories of this paper are: hep-ph
7
The categories of this paper are: hep-th
30
The categories of this paper are: q-alg