I consider a panel vector-autoregressive model with cross-sectional dependence of the disturbances characterized by a spatial autoregressive process. I propose a three-step estimation procedure. Its first step is an instrumental variable estimation that ignores the spatial correlation. In the...

We attempt to introduce human capital externality and endogenous laborleisure decision into the analytical framework constructed by Uzawa (1965) and Lucas (1988) simultaneously, so as to explore the internal relationship among endogenous labor supply, human capital externality and sustainable...

The ecological ICMS was first used to distribute a share of the ICMS revenue in the state of Parana in 1991. This pioneer experience originated from counties’ claims which argued that their economies were harmed by land use restrictions, mainly because they were watershed protection areas or...

We propose a new methodology for estimating semiparametric panel data models, with a primary focus on the nonparametric component. We eliminate individual effects using first differencing transformation and estimate the unknown function by marginal integration. We extend our methodology to treat...

This paper derives several Lagrange Multiplier statistics and the correspondinglikelihood ratio statistics to test for spatial autocorrelation in a fixed effectspanel data model. These tests allow discriminating between the two main typesof spatial autocorrelation which are relevant in empirical...

This paper examines how firm age can affect a firm’s perception of the obstacles (deterring vs. revealed) that hamper and delay innovation. Using a comprehensive panel of Spanish firms for the period 2004-2011, the empirical analysis conducted shows that distinct types of obstacle are...

The high cost of child care makes child care services unaffordable for many low-income families. This research examines the determinants of state-level prices of child care centers and family child care homes for infants and 4-year olds between 2006 and 2012. Similar to the previous findings,...

This paper investigates the determinants of growth in the Asian developing economies. We use Bayesian model averaging (BMA) in the context of a dynamic panel data growth regression to overcome the uncertainty over the choice of control variables. In addition, we use a Bayesian algorithm to...