Offering a unifying theoretical perspective not readily available in any other text, this innovative guide to econometrics uses simple geometrical arguments to develop students' intuitive understanding of basic and advanced topics, emphasizing throughout the practical applications of modern theory and nonlinear techniques of estimation. One theme of the text is the use of artificial regressions for estimation, reference, and specification testing of nonlinear models, including diagnostic tests for parameter constancy, serial correlation, heteroscedasticity, and other types of mis-specification. Explaining how estimates can be obtained and tests can be carried out, the authors go beyond a mere algebraic description to one that can be easily translated into the commands of a standard econometric software package. Covering an unprecedented range of problems with a consistent emphasis on those that arise in applied work, this accessible and coherent guide to the most vital topics in econometrics today is indispensable for advanced students of econometrics and students of statistics interested in regression and related topics. It will also suit practising econometricians who want to update their skills. Flexibly designed to accommodate a variety of course levels, it offers both complete coverage of the basic material and separate chapters on areas of specialized interest.

Estimation and Inference in Econometrics

Political corruption, public procurement, and budget composition : Theory and evidence from OECD countries

Why have advanced democracies experienced a retreat of the interventionist state since 1980? This article provides evidence that in all relevant policy indicators (spending, subsidies, state-owned enterprises, regulation, capital taxation) government intervention has been scaled back across the OECD. An overview of the results of 130 quantitative studies analysing at least one of these indicators is provided. Focusing on five main explanatory variables – globalization, Europeanization, learning and emulation, socio-economic problems, and political parties – only limited agreement in the literature is found. The reasons for this disagreement are discussed. Ways forward are suggested for the theoretical models on which studies are based, how the dependent variable is chosen, the empirical approaches that may be applied, and how quantitative research and comparative case studies may be combined.

The Retreat of the Interventionist State in Advanced Democracies

This study analyzes how prevailing institutional arrangements i.e., property rights, contracting rights, political institutions, and corporate governance practices affect privatized firms’ performance, capital markets development, and economic growth. Most of the studies surveyed show that privatization enhances privatized firms performance, efficiency, and profitability, which percolates to economic growth. Privatized firms performed better in countries with better regulatory and legal frameworks. Partial privatization may be beneficial in countries with weak institutions, namely, the French civil law countries. The stronger the economic and the governing institutions, the easier it is for privatized firms to thrive and contribute to economic growth. Overall, privatization allows firms to achieve improved efficiency while driving the development of the financial sector.

Privatization, Financial Development, Property Rights and Growth

Partisan differences and the interventionist state in advanced democracies

The retreat of the state from entrepreneurial activities: A convergence analysis for OECD countries, 1980–2007

Universal Service provision has a special role for the public utilities sector in many Organization for Economic Co-operation and Development (OECD) countries. These public utilities have largely been subject to privatization during the last 3 decades. Efficiency effects of privatization are widely documented while the impacts on the quality and accessibility of the Universal Service are not much examined. By using a unique dataset on privatization for 21 countries over the period 1980–2007 for the postal sector, we are able to show that privatization, in particular formal privatization, has led to a decrease in the quality of the Universal Service.

Philipp B. Schuster

Papers

The retreat of the state from entrepreneurial activities: A convergence analysis for OECD countries, 1980–2007

One for all and all for one: privatization and Universal Service provision in the postal sector