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

Social Network Analysis

Emerging economies are low-income, rapid-growth countries using economic liberalization as their primary engine of growth. They fall into two groups: developing countries in Asia, Latin America, Africa, and the Middle East and transition economies in the former Soviet Union and China. Private and public enterprises have had to develop unique strategies to cope with the broad scope and rapidity of economic and political change in emerging economies. This Special Research Forum on Emerging Economies examines strategy formulation and implementation by private and public enterprises in several different regional settings and from three primary theoretical perspectives: institutional theory, transaction cost economics, and the resource-based view of the firm. In this introduction, we show how different theoretical perspectives can provide useful insights into enterprise strategies in emerging economies. We discuss the special methodological as well as empirical challenges associated with doing research in emer...

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Strategy in Emerging Economies

Signaling Theory: A Review and Assessment

List of Figures ix List of Tables xi Preface and Acknowledgments xiii Introduction 1 PART I: VETO PLAYERS THEORY 17 One: Individual Veto Players 19 Two: Collective Veto Players 38 PART II: VETO PLAYERS AND INSTITUTIONAL ANALYSIS 65 Three: Regimes: Nondemocratic, Presidential, and Parliamentary 67 Four: Governments and Parliaments 91 Five: Referendums 116 Six: Federalism, Bicameralism, and Qualified Majorities 136 PART III: POLICY EFFECTS OF VETO PLAYERS 161 Seven: Legislation 165 Eight: Macroeconomic Policies 187 PART IV: SYSTEMIC EFFECTS OF VETO PLAYERS 207 Nine: Government Stability 209 Ten: Judiciary and Bureaucracies 222 Eleven: Veto Players Analysis of European Union Institutions 248 Conclusion 283 Bibliography 291 Index 309

Veto Players: How Political Institutions Work

This article forges an explicit link between an objective measure of political constraints and variation in cross-national growth rates. It derives a new measure of political constraints from a simple spatial model of political interaction that incorporates information on the number of independent branches of government with veto power and the distribution of preferences across and within those branches. The derived variable is found to have a statistically and economically significant impact on growth rates using simple ordinary least squares, three-stage least squares and generalized method of moments estimation techniques.

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The Institutional Environment for Economic Growth

This article posits that the effect of political hazards on the choice of market entry mode varies across multinational firms based on the extent to which they face expropriation hazards from their potential joint-venture partners in the host country (the level of contractual hazards). As political hazards increase, the multinational faces an increasing threat of opportunistic expropriation by the government. Partnering with host-country firms that possess a comparative advantage in interactions with the host-country government can safeguard against this hazard. However, as contractual hazards increase, the potential benefit to the joint-venture partner of manipulating the political system for it's own benefit at the expense of the multinational increases as well, thereby diminishing the hazard-mitigating benefit of forming a joint venture. A two-stage bivariate probit estimation technique is used to test these hypotheses on a sample of 3,389 overseas manufacturing operations by 461 firms in 112 countries. Copyright 2000 by Oxford University Press.

The institutional environment for multinational investment

The empirical evidence that links political institutions to economic outcomes has grown dramatically in recent years. However, virtually all of this analysis is undertaken using data from the past three decades. This paper extends this empirical framework by performing a two-century long historical analysis of the determinants of infrastructure investment in a panel of over 100 countries. The results demonstrate that political environments that limit the feasibility of policy change are an important determinant of investment in infrastructure. Copyright 2002, Oxford University Press.

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The institutional environment for infrastructure investment

In a study of a sample of 2,705 international plant location decisions by listed Japanese multinational corporations across a possible set of 155 countries in the 1990-1996 period, we use neoinstit...

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Uncertainty, Imitation, and Plant Location: Japanese Multinational Corporations, 1990‐1996:

We find support for the role of experiential learning in the international expansion process by extending the stages model of internationalization to incorporate a sophisticated consideration of temporal and cross-national variation in the credibility of the policy environment. Using a sample of 3857 international expansions of 665 Japanese manufacturing firms, we build on the concepts of uncertainty and experiential learning, to show that firms that had gathered relevant types of international experience were less sensitive to the deterring effect of uncertain policy environments on investment. One implication of our results is that research on international strategy should emphasize understanding the political institutions that constrain or enable political actors, just as entry mode research has done. A second implication is that research in the stages model of internationalization should give the same weight to the policy environment as a source of uncertainty to a firm, as it has given to cultural, social and market institutions. Copyright © 2003 John Wiley & Sons, Ltd.

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Witold J. Henisz

Papers

The Institutional Environment for Economic Growth

The institutional environment for multinational investment

The institutional environment for infrastructure investment

Uncertainty, Imitation, and Plant Location: Japanese Multinational Corporations, 1990‐1996:

Political hazards, experience, and sequential entry strategies: The international expansion of Japanese firms, 1980-1998