Existing studies on the impact of the euro on goods trade report increments between 5% and 40%. These estimates are based on standard panel gravity models for the level of trade. We show that the residuals from these models exhibit upward trends over time for the euro countries, and that this...

type="main" xml:id="obes12062-abs-0001" <title type="main">Abstract</title> <p>This article proposes a partially heterogeneous framework for the analysis of panel data with fixed T. In particular, the population of cross-sectional units is grouped into clusters, such that slope parameter homogeneity is maintained only within...</p>