In this paper we consider estimation and inference of common breaks in panel data models via adaptive group fused lasso. We consider two approaches — penalized least squares (PLS) for firstdifferenced models without endogenous regressors, and penalized GMM (PGMM) for first-differenced models with endogeneity. We show that with probability tending to one both methods can correctly determine the ...

This paper proposes a new instrumental variables estimator for a dynamic panel model with …xed e¤ects with good bias and mean squared error properties even when identi…cation of the model becomes weak near the unit circle. We adopt a weak instrument asymptotic approximation to study the behavior of various estimators near the unit circle. We show that an estimator based on long di¤erencing the ...

The Canadian economy has been a net recipient of foreign direct investment (FDI). The free-trade agreements (FTA and NAFTA) have had to attract more inward FDI. This study examines the determinants of foreign direct investment (FDI) between Canada and EU15, Brazil and Japan in the period 1995-2007. The purpose of this paper is to analyze the impact of variables, such as, market size, labour cos...

We review the changes in modelling strategy and econometric methodology when estimating a firm-level investment equation on panel data during the past twenty years, in order to assess which of these changes result from new estimation methods and changes in the practice of panel data econometrics, and which are ”real” and due to the evolution of the economy. Thus our paper consists of a series o...

Purpose The main purpose of this research is to examine the impact institutional quality and sectoral employment on environmental degradation in developing countries. This paper also re-examined validity Environmental Kuznets Curve (EKC) hypothesis estimated long run explanatory variables CO 2 emissions. Design/methodology/approach In paper, balanced panel data for period 2002–2016 was used bas...

A computationally simple bias correction for linear dynamic panel data models is proposed and its asymptotic properties are studied when the number of time periods fixed or tends to infinity with units. The approach can accommodate both fixed-effects random-effects assumptions, heteroskedastic errors, as well higher-order autoregressive models. Panel-corrected standard errors that allow robust ...

Abstract: This paper explores the possibility that unregulated FDI flows are causally implicated in the decline in labor productivity growth in semi-industrialized economies. These effects are hypothesized to operate through the negative impact of firm mobility on worker bargaining power and thus wages. Downward pressure on wages can reduce the pressure on firms to raise productivity in defense...

I examine the relationship between board of director’s (BoD) education and firm performance on a European dataset over the period from 1999 to 2013, employing a well-developed dynamic panel generalized method of moments (GMM) estimator to alleviate endogeneity issue in corporate governance study. I find no correlation between BoD education and firm’s return on asset, after accounting for endoge...

This paper measures the productivity impact of shop-floor employee involvement. On the basis of a representative German establishment data set, the study finds that the introduction of team-work and autonomous work groups, and a reduction of hierarchies in 1996/97 significantly increased average establishment productivity in 1997 – 2000. The estimation strategy controls for unobserved invariant...

Does interregional migration equilibrate regional labor market performances? We answer this question focusing on regional unemployment dynamics in Italy over the 1995-2006 period, when a strong flow of out-migration from the South to the North occurred. Using System-GMM estimators for spatial dynamic panel data models in the presence of endogenous variables, the empirical analysis documents tha...