We investigate the finite sample performance of several estimators proposed for the panel data Tobit regression model with individual effects, including Honor¨¦ estimator, Hansen¡¯s best two-step GMM estimator, the continuously updating GMM estimator, and the empirical likelihood estimator...

As Chari et al. (2007) indicate, many growth theories explaining frictions in real economies are equivalent to a competitive economy, with some exogenous taxes. Using this idea, I developed an accounting method for identifying fundamental causes of economic growth. A two-sector neoclassical...

A consensus is still to be reached regarding the relationship between trade, growth, and the environment in either the existing theoretical models or previous empirical analyses. By using a Sino-Korean case study, we expect this work to contribute to the theoretical and empirical knowledge of...

Uncertainty induced by the political environment affects investment risk, and thus affects investment decisions, which have a close relationship with economic development. This paper investigates the economic cost of political instability using the case study of the tense relationship...

We consider a sequential merger game between Cournot firms with homogeneous product and quadratic cost. A large slope of the marginal cost function or a small slope of inverse market demand are both predicted to increase the incentive to merge. The profitability of any merger increases with the...

Consider an observed binary regressor D and an unobserved binary variable D*, both of which affect some other variable Y . This paper considers nonparametric identification and estimation of the effect of D on Y , conditioning on D* = 0. For example, suppose Y is a person¡¯s wage, the...

How can we fit different monetary transmission channels together to understand the effect of China¡¯s monetary policy? This paper focuses on China¡¯s monetary conditions and aggregate demand in terms of the monetary conditions index (MCI), which has been widely used as an important indicator...

As an extension of the neoclassical urban systems theory (Henderson, 1974), we develop a general theory of regional (inter-city) price dispersion which also explains the ¡°subnational Penn effect,¡± i.e., cross-city correlations among population size, prices, real income and human capital...

This paper builds an externality-based model with physical and R&D capital, proves the linearity of technology functions, and derives two measures of spillovers from the relative differences between social and private rates of return. China¡¯s regional empiric studies exhibit a reverse...

We consider a transaction costs model of sovereign debt buybacks in this paper. We show that both secret and publicly known buybacks are profitable for the debtor country. Furthermore, the government of the debtor country would like to spend all of its initial endowment to buy back its debt as...