Structural Gravity and Fixed Effects

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Estimating the effects of non‐discriminatory trade policies within structural gravity models (2017, unknown): “…likelihood (PPML) estimator, which has become the standard for gravity regressions (see Santos Silva and Tenreyro 2006), then the fixed effects can be predicted perfectly in the second stage by the structural gravity terms, i.e., by size and the multilateral resistance terms; see Fally (2015).”
On the widely differing effects of free trade agreements: Lessons from twenty years of trade integration (2019, unknown): “Arvis & Shepherd (2013) and Fally (2015) offer further reasons for PPML’s suitability in the gravity context.”
An Advanced Guide to Trade Policy Analysis: The Structural Gravity Model (2016, background): “26 additive property of the PPML estimator ensures that the gravity fixed effects are identical to their corresponding structural terms (Arvis and Shepherd, 2013; Fally, 2015).”