In this paper we consider GMM based estimation and inference for the panel AR(1) model when the data are persistent and the time dimension of the panel is fixed. We find that the nature of the weak instruments problem of the Arellano-Bond estimator depends on the distributional properties of the...

In this paper we show that the Quasi ML estimation method yields consistent Random and Fixed Effects estimators for the autoregression parameter ρ in the panel AR(1) model with arbitrary initial conditions even when the errors are drawn from heterogenous distributions. We compare both...

This paper examines empirically a range of theoretical hypotheses about the determinants of FDI location in a panel data regression framework. The results of the estimation of a gravity model lend support to the proximity-concentration and internalisation hypotheses. Also, the fact that FDI has...

Individuals who vote in one election are also more likely to vote in the next. Modelling the causal relationship between past and current voting decisions however is intrinsically difficult, as this positive association can exist due to habit formation or unobserved heterogeneity. This paper...

The key financial determinants of firm profitability and employment growth are identified by using a panel of 3094 Greek manufacturing firms for 1995 and 1999, just before the country's accession to the European Monetary Union. The analysis includes stepwise regression models. The independent...