This paper proposes a new panel model of cross-sectional dependence. The model has a number of potential structural … approach to the modelling of interactions across panel units and can generate endogenous cross-sectional dependence that can …

estimation efficiency while properly tackling the potential bias due to unobserved individual characteristics. We propose an … clean the bias in the unpaired sample. In a second step, corrected unpaired observations are used jointly with panel data …. This reduces the standard errors of the estimation coefficients and might increase their significance as well, otherwise …

that this will lead to a dynamic factor model with the dominant unit acting as the factor. The problems of estimation and …

We consider estimation and inference for a regression coefficient in panels with interactive fixed effects (i.e., with … minimax linear estimation to form a debiased estimate using a nuclear norm bound on the error of an initial estimate of the … weak, with little cost to estimation error when factors are strong. …

Carlo experiments, where we also study the estimation of the aggregate effects of micro and macro shocks. The paper … concludes with an empirical application to consumer price inflation in Germany, France and Italy, and re-examines the extent to … which observed inflation persistence at the aggregate level is due to aggregation and/or common unobserved factors. Our …

Carlo experiments, where we also study the estimation of the aggregate effects of micro and macro shocks. The paper … concludes with an empirical application to consumer price inflation in Germany, France and Italy, and re-examines the extent to … which 'observed' inflation persistence at the aggregate level is due to aggregation and/or common unobserved factors. Our …

Recently some new techniques have been proposed for the estimation of the slope coefficients in presence of unobserved … components. Though, the presence of common observed and unobserved factors is neither considered or the estimation of their …

Panel unit root tests of real exchange rates - as opposed to univariate tests - usually reject non-stationarity. These … correlation matrix affect the size of first and second generation panel unit root tests. Two components of the real exchange rate …, the real exchange rate of a single good and a weighted sum of relative prices, are constructed from the data for a panel …

Theoretical models point at various channels of the impact of inflation on corporate investment. This article attempts … corporate investment and inflation on the sample of 21 OECD countries in the years 1960-2005. The obtained negative relationship … this relationship: the marginal effect on corporate investment is higher at inflation rates between 3 and 5.5 per cent …

In this paper we analyse the short- and long-run relationship between employment growth, inflation and output growth in … dynamic panel including annual data for 119 countries over the period 1970-2010, and also carry out multivariate Granger … growth, inflation and output growth with bidirectional causality between employment growth and inflation as well as output …