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Dynamic panel data models: a guide to microdata methods and practice
TLDR
In this article, the focus is on panels where a large number of individuals or firms are observed for a small number of time periods, typical of applications with microeconomic data, and the emphasis is on single equation models with autoregressive dynamics and explanatory variables.Abstract:
This paper reviews econometric methods for dynamic panel data models, and presents examples that illustrate the use of these procedures. The focus is on panels where a large number of individuals or firms are observed for a small number of time periods, typical of applications with microeconomic data. The emphasis is on single equation models with autoregressive dynamics and explanatory variables that are not strictly exogenous, and hence on the Generalised Method of Moments estimators that are widely used in this context. Two examples using firm-level panels are discussed in detail: a simple autoregressive model for investment rates; and a basic production function.read more
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Loan Loss Provision and Risk-Taking Behavior of Commercial Banks in Pakistan: A Dynamic GMM Approach
TL;DR: In this paper, the authors analyzed the determinants of the loan loss provision (LLP) of 22 commercial banks in Pakistan from 2010 to 2017 and found that LLP is a measure of credit risk as a proxy for bank risk-taking behavior profits and banks' sustainability.
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The Impact of Monetary Policies on the Exchange Rate: A GMM Approach
TL;DR: In this paper, the impact of monetary policies on the exchange rate of selected developing countries during the period 2001-2010 was investigated, in which dynamic panel data based on the generalized method of moments (GMM) have been used to estimate the model.
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When are new energy vehicle incentives effective? Empirical evidence from 88 pilot cities in China
TL;DR: Zhang et al. as discussed by the authors investigated the effectiveness of various demand-side incentives in 88 NEV pilot cities in China and revealed that the policy mix accounts for 16.9-47.6 % of the variation in NEV sales in distinct city categories.
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The effect of political institutions on the size of government spending in European Union member states and Croatia
TL;DR: In this article, the authors present an overview of theoretical and empirical research on the interaction between political institutions and economic variables using the dynamic panel model, and investigate the indirect effects of electoral systems on the size of general government spending.
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