We propose the Grouped Coefficients estimator to reduce the bias of dynamic panels that have a multilevel structure to the coefficient and factor loading heterogeneity. If groups are chosen such that the within-group heterogeneity is small, then the grouped coefficients estimator can lead to a...

Recent econometric studies indicate that the effect of government farm subsidies on farmland rental rates may be smaller than once thought. This literature has corrected for bias due to expectation error in measured subsidy payments. We suggest two additional sources of bias—inertia and...

Recent studies indicate that the effect of government subsidies on rental rates for farmland may be lower than once thought and lower than predictions from theory. However, there are still a number of unresolved issues in estimating subsidy incidence econometrically. We identify three such...

This paper studies the divergence in the planning and equilibrium solutions for a multicell aquifer with heterogeneity in cell depths. A spatial model is developed that explicitly accounts for the lateral movement of water between cells. The optimal planning problem maximizes the discounted...

We examine the effects of irrigation technology subsidies using a model of inter- temporal common pool groundwater use with substitutable technology and declining yields from groundwater stocks, where pumping cost and stock externalities arise from the common property problem. We employ an...