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In the presence of selection bias, traditional estimators of pseudo panel data are inconsistent. In this paper, the … authors derive the conditions under which consistence is achieved in pseudo-panel estimation and propose a simple test of … of the null hypothesis, the authors can consistently estimate pseudo-panel parameters. They use cross sections and pseudo-panel …
Persistent link: https://www.econbiz.de/10010956040
This paper investigates the nature of the IV method for tackling endogeneity. By tracing the rise and fall of the … a valid conditional variable. The revealed nature explains why the IV route is popular for models where endogeneity is …
Persistent link: https://www.econbiz.de/10010956033
across studies; and the Panel Random Effects case, where studies have multiple estimates, and true effects are random both …
Persistent link: https://www.econbiz.de/10011170358
A concept and mathematical model of modern economics are formulated in which a company profit is defined when taking into account possible interests of individual decision makers rather than based exclusively on benefits of either the company (ground of microeconomics) or the whole society...
Persistent link: https://www.econbiz.de/10011144577
A general theoretical and empirical framework is developed for assessing the potential of a vertically integrated firm to foreclose downstream competitors. Using this framework a policymaker may also evaluate the empirical welfare effects from a vertically integrated firm raising rivals' costs....
Persistent link: https://www.econbiz.de/10010956119
We analyze cascades of defaults in an interbank loan market. The novel feature of this study is that the network structure and the size distribution of banks are derived from empirical data. We find that the ability of a defaulted institution to start a cascade depends on an interplay of shock...
Persistent link: https://www.econbiz.de/10010886963
Researchers seldom find evidence of I(2) in exchange rates, prices, and other macroeconomics time series when they test the order of integration using univariate Dickey-Fuller tests. In contrast, when using the multivariate ML trace test we frequently find double unit roots in the data. Our...
Persistent link: https://www.econbiz.de/10010956111
Dynamic econometric models are carefully built to analyse counterfactually the globalisation effect on inflation for ten countries from G10 during the Great Moderation period. The main findings are (i) the effect is highly heterogeneous from country to country; (ii) increases in trade openness...
Persistent link: https://www.econbiz.de/10010956145
Due to their indeterminacies, static and dynamic factor models require identifying assumptions to guarantee uniqueness of the parameter estimates. The indeterminacy of the parameter estimates with respect to orthogonal transformations is known as the rotation problem. The typical strategy in...
Persistent link: https://www.econbiz.de/10010886957
Due to their well-known indeterminacies, factor models require identifying assumptions to guarantee unique parameter estimates. For Bayesian estimation, these identifying assumptions are usually implemented by imposing constraints on certain model parameters. This strategy, however, may result...
Persistent link: https://www.econbiz.de/10010886959