Panel data analysis has become very popular in comparative political economy. However, in order to draw meaningful inferences from such data, one has to address specification and estimation issues carefully. This paper aims to demonstrate various pitfalls that typically occur in applied...

Theoretical reasoning disagrees about what type of bargaining system performs best. We have tested the explanatory power of three competing hypotheses: neoliberalism, coporatism and the hump-shape hypothesis. All of these hypotheses lack empirical support due to two main shortcomings. First,...