Recently gravity trade models are applied to disaggregated trade data. Here many zeros are characteristic. In the presence of excess zeros usual Poisson Pseudo Maximum Likelihood (PPML) is still consistent, the variance covariance matrix however is invalid. Correct economic interpretation...

The deepening of the Barcelona Agreement and the discussions of the creation of a Mediterranean Union has awakened the interest of the non-EU Mediterranean countries to expand their exports to the European markets. This study analyses the factors that influence the German imports of olive oil by...