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A New Bayesian Bootstrap for Quantitative Trade and Spatial Models

Bas Sanders

arXiv 17 May 2025 · Econometrics

arXiv:2505.11967 · PDF · DOI · OpenAlex · Extracted main text

Abstract

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 Artu\c{c} et al. (2010) illustrates the practical advantages of the approach.

Citation extraction

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Most heavily cited references

The works this paper leans on most, across its whole bibliography — not restricted to papers in our corpus. Ranked by composite intensity, which combines how often a work is mentioned, how many sections mention it, and how much of that falls in the main text rather than the appendix.

ReferenceIntensityMentionsSectionsMain text
1Graham (2020) Network data1.00094100%
2Davezies, D'haultfuille, and Guyonvarch (2021) Empirical process results for exchangeable arrays0.97112592%
3Van der Vaart (2000) Asymptotic statistics0.9619389%
4Menzel (2021) Bootstrap with cluster-dependence in two or more dimensions0.92843100%
5Waugh (2010) International trade and income differences0.921501078%
6Graham (2020) Dyadic regression0.91613677%
artucc2010tradeunmatched citation key artucc2010trade0.90928775%
8Silva and Tenreyro (2006) The log of gravity0.8746467%
9Caliendo and Parro (2015) Estimates of the Trade and Welfare Effects of NAFTA0.85727763%
10Pollard (1984) Convergence of stochastic processes0.7375260%

Showing the top 10 of 48 scored citations. 1 of these could not be matched to a bibliography entry, so only the citation key is shown.

Cited by, within the corpus

arXiv econ.EM papers that cite this one, ranked by how heavily they lean on it.

Citing paperIntensityMentionsSections
1Measurement Error and Counterfactuals in Quantitative Trade and Spatial Models0.51122