Shortage of nurses is a problem in several countries. It is an unsettled question whether increasing wages constitute a viable policy for extracting more labor supply from nurses. In this paper we use a unique matched panel data set of Norwegian nurses covering the period 1993-1997 to estimate...

This paper derives a joint Lagrange Multiplier (LM) test which simultaneously tests for the absence of spatial lag dependence and random individual effects in a panel data regression model. It turns out that this LM statistic is the sum of two standard LM statistics. The first one tests for the...

A Monte Carlo study is used to compare the finite sample relative efficiency of a number of pure and pre-test estimators for an error component model with first-order autocorrelated remainder disturbances.

This paper surveys some applications of artificial regressions including the Gauss-Newton, Double-Length and Binary Response Model regressions as testing tools for panel data models. In addition, several other artificial regression tests are reviewed including Hausman's [1978] specification...

Schmidt's [1977] results on seemingly unrelated regressions with unequal number of observations are replicated. These results are shown to be robust to the type of addtional observations available i. e., whether they are time series or cross-sectional in nature. An important finding is that the...

This paper addresses the empirical question of whether trade and financial openness can help explain the recent pace in financial development, as well as its variation across countries in recent years. Utilising annual data from developing and industrialised countries and dynamic panel...

Chamberlain [Chamberlain, G., 1982. Multivariate regression models for panel data. Journal of Econometrics 18, 5-46] showed that the fixed effects (FE) specification imposes testable restrictions on the coefficients from regressions of all leads and lags of dependent variables on all leads and...

This note shows that for a spatial regression with equal weights, the LM test is always equal to N / 2(N - 1), where N is the sample size. This means that this test statistics is a function of N and not a function of the spatial parameter [rho]. In fact, this test statistic tends to...

This paper studies the performance of panel unit root tests when spatial effects are present that account for cross-section correlation. Monte Carlo simulations show that there can be considerable size distortions in panel unit root tests when the true specification exhibits spatial error...