Recent developments within the panel unit-root literature have illustrated how the exact factor model serves as a parsimonious framework and allows for consistent maximum likelihood inference even when it is misspecified contra the more general approximate factor model. In this paper we consider...

Most panel data studies of the predictability of returns presume that the cross-sectional units are independent, an assumption that is not realistic. As a response to this, the current paper develops block bootstrap-based panel predictability tests that are valid under very general conditions....

We consider an exact factor model and derive a Lagrange multiplier-type test for unit roots in the idiosyncratic components. The asymptotic distribution of the statistic is derived under the misspecification that the differenced factors are white noise. We prove that the asymptotic distribution...

Using a fixed-effects panel data approach, FDI flows of 22 OECD countriesare explained by gravity equations over the period 1991-2001. It isdistinguished between all available observations, Intra-EU25 observationsonly, and observations not belonging to the EU25 area in order to controlfor...

Using a fixed-effects panel data approach, FDI flows of 22 OECD countries are explained by gravity equations over the period 1991-2001. It is distinguished between all available observations, Intra-EU25 observations only, and observations not belonging to the EU25 area in order to control for...

Using a fixed-effects panel data approach, FDI flows of 22 OECD countries are explained by gravity equations over the period 1991-2001. It is distinguished between all available observations, Intra-EU25 observations only, and observations not belonging to the EU25 area in order to control for...

Temporary jobs have spread in an important way during the nineties, especially on the Belgian labour market. From a labour demand point of view, we first stress on the reasons why they might reduce labour adjustment (firing) costs and to a lesser extent other labour costs, but why they might...

The crux of the present article is that if corporations (as bank clients) are profitable in a globalised economic environment and there are no barriers to entrepreneurship, banks (as lenders to these corporations) are expected to be profitable too. Thus, our proposed model is a link between...

Since its beginnings, about 40years ago, the econometrics of panel data has experienced an incredible evolution, both from the point of view of its applications and from that of the building of a significant corpus of appropriate methods. This paper aims at providing a short statement of the...