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Panel data
About: Panel data is a research topic. Over the lifetime, 28543 publications have been published within this topic receiving 775177 citations.
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TL;DR: In this article, the estimation of Cobb-Douglas production functions using panel data covering a large sample of companies observed for a small number of time periods was considered, and the additional instruments used in the extended GMM estimator yield much more reasonable parameter estimates.
Abstract: This paper considers the estimation of Cobb-Douglas production functions using panel data covering a large sample of companies observed for a small number of time periods. GMM estimatorshave been found to produce large finite-sample biases when using the standard first-differenced estimator. These biases can be dramatically reduced by exploiting reasonable stationarity restrictions on the initial conditions process. Using data for a panel of R&Dperforming US manufacturing companies we find that the additional instruments used in our extended GMM estimator yield much more reasonable parameter estimates.
2,097 citations
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TL;DR: The authors analyzed the causal links between exporting and productivity using firm-level panel data from three semi-industrialized countries and found that relatively efficient firms become exporters, but firms' unit costs are not affected by previous export market participation, while the well-known efficiency gap between exporters and non-exporters is due to self-selection of the more efficient firms into the export market, rather than learning by exporting.
Abstract: Is there any empirical evidence that firms become more efficient after becoming exporters? Do firms that become exporters generate positive spillovers for domestically-oriented producers? In this paper we analyze the causal links between exporting and productivity using firm-level panel data from three semi-industrialized countries Representing export market" participation and production costs as jointly dependent autoregressive processes, we look for evidence that firms' stochastic cost processes shift when they break into foreign markets We find that relatively efficient firms become exporters, but firms' unit costs are not affected by previous export market participation So the well-known efficiency gap between exporters and non-exporters is due to self-selection of the more efficient firms into the export market, rather than learning by exporting Further, we find some evidence that exporters reduce the costs of breaking into foreign markets for domestically oriented producers, but they do not appear to help these producers become more efficient
1,986 citations
TL;DR: In this article, a stochastic frontier production function is defined for panel data on sample firms, such that the disturbances associated with observations for a given firm involve the differences between traditional symmetric random errors and a non-negative random variable, which is associated with the technical efficiency of the firm.
1,925 citations
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TL;DR: 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.
1,821 citations
TL;DR: In this article, the authors present evidence supporting the theory that problems of asymmetric information in debt markets affect financially unhealthy firms' ability to obtain outside finance and, consequently, their allocation of real investment expenditure over time.
Abstract: This paper presents evidence supporting the theory that problems of asymmetric information in debt markets affect financially unhealthy firms' ability to obtain outside finance and, consequently, their allocation of real investment expenditure over time. I test this hypothesis by estimating the Euler equation of an optimizing model of investment. Including the effect of a debt constraint greatly improves the Euler equation's performance in comparison to the standard specification. When the sample is split on the basis of two measures of financial distress, the standard Euler equation fits well for the a priori unconstrained groups, but is rejected for the others. Do IMPERFECTIONS IN THE financial system play a role in economic fluctuations? Recent research in empirical macroeconomics has directed this question to the area of investment, asking in particular whether firms with free access to capital markets have different investment behavior from those who do not. Emphasis on this question has resulted in part from the theoretical predictions of a recent surge of work in the economics of imperfect information that has explored how violations of the Modigliani-Miller theorem ascribe a role for finanical factors in the investment process. In addition, interest in the question has been spurred by the poor empirical performance of standard optimizing models of investment. For example, tests of the q-theory of investment have found little explanatory power for q, have implied implausibly slow capital stock adjustment speeds, and have been outperformed by simple ad hoc accelerator models.1 One specific hypothesis has been at the center of recent attempts to explore the connection between finance and investment. If a firm has difficulty obtaining outside finance, its investment should display excess sensitivity to the availability of internal funds.2 Moreover, differences in this sensitivity
1,771 citations