Panel and Pseudo-Panel Estimation of Cross-Sectional and Time Series Elasticities of Food Consumption

Cross Sectional and Panel Estimation of Convergence

Cross sectional estimation of convergence regressions is known to be hazardous if there is convergence towards heterogeneous steady state values. In this paper, Monte Carlo methods are used to investigate the implications of this parameter heterogeneity problem. The cross sectional and pooled OLS estimators are compared with a panel estimator which is unaffected by heterogeneity. If there is he...

Estimation of own and cross price elasticities of alcohol demand in the UK—A pseudo-panel approach using the Living Costs and Food Survey 2001–2009☆

The estimation of price elasticities of alcohol demand is valuable for the appraisal of price-based policy interventions such as minimum unit pricing and taxation. This study applies a pseudo-panel approach to the cross-sectional Living Cost and Food Survey 2001/2-2009 to estimate the own- and cross-price elasticities of off- and on-trade beer, cider, wine, spirits and ready-to-drinks in the UK...

Explaining Fixed Effects: Random Effects modelling of Time-Series Cross-Sectional and Panel Data

Explaining Fixed Effects: Random Effects Modeling of Time-Series Cross-Sectional and Panel Data*

T his article challenges Fixed Effects (FE) modeling as the ‘default’ for time-series-crosssectional and panel data. Understanding different within and between effects is crucial when choosing modeling strategies. The downside of Random Effects (RE) modeling— correlated lower-level covariates and higher-level residuals—is omitted-variable bias, solvable with Mundlak’s (1978a) formulation. Conse...

Estimation and inference with non-stationary panel time-series data

The econometric theory for panel data regressions was largely developed for survey data where N the number of individuals was large and T the number of time periods small. The asymptotic statistical theory was derived by letting N → ∞ for fixed T . In recent years there has been growing interest in cases, such as sets of countries, regions or industries, where there are fairly long time-series ...