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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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Government size, composition of public expenditure, and economic development
Sandra Martins,Francisco Veiga +1 more
TL;DR: In this article, the effects of government size and of the composition of public expenditure on economic development were analyzed using the system-GMM estimator for linear dynamic panel data models, on a sample covering up to 156 countries and 5-year periods from 1980 to 2010, and they found that government size as a percentage of GDP has a quadratic (inverted U-shaped) effect on the growth rate of the Human Development Index (HDI).
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Does Merit-Based Aid “Crowd Out” Need-Based Aid?
TL;DR: The authors hypothesize that the advent of merit-based state financial aid may be an example of Baumgartner and Jones' punctuated equilibria, and show that need-based aid has changed only incrementally in the states, without an observable effect of merit based aid.
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Elasticities of market shares and social health insurance choice in germany: a dynamic panel data approach
TL;DR: Estimation results suggest that short-run price elasticities are smaller than previously found by other studies, but in the long-run, however, estimation results suggest substantial price effects.
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Retirement of Older Workers and Employment of the Young
TL;DR: In this paper, the authors revisited the nexus between employment of older and younger workers, if only to put any concerns for adverse effects of later retirement on youth employment to rest, and empirically investigated a dynamic model of employment of the young, prime age and old people.
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Structural policies and growth: Time series evidence from a natural experiment☆
Theo S. Eicher,Till Schreiber +1 more
TL;DR: This article used an eleven-year panel of 26 transition countries to identify short-term effects of structural policies that are large and significant and found that a ten percent change in the quality of structural policy towards OECD standards is shown to raise annual growth by about 2.5%.
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