A dramatically large number of corner solutions occur when estimating by (Gaussian) maximum likelihood a simple model for panel data with random effects and autocorrelated errors. This can invalidate results of applications to panel data with a short time dimension, even in a correctly specified...

The paper estimates the cost of maintaining a child, of different ages, the cost of being a single and the cost of additional adults present in a family with the aim of making the income levels of different households comparable. The study investigates the issue of econometric identification of...

One of the major virtues of panel data models is the possibility to control for unobserved and unobservable heterogeneity at the unit (individual, firm, sector...) level, even when this is correlated with the variables included on the right hand side of the equation. By assuming an additive...