This paper examines the Benhabib and Spiegel (2005) model of technology diffusion using a new latent index of human capital and competing indicators that include the Barro and Lee (2010) estimates. The new index is a measure of education quality for seventy nations in 1970-2003. Analysis utilises both cross-section and dynamic panel GMM estimation and extends beyond the Cobb-Douglas production ...

This paper proposes a method for estimating a censored panel data model with a lagged latent dependent variable and individual-specific fixed effects. The main insight is to trim observations in such a way that a certain symmetry, which was destroyed by censoring, is restored. Based on the restored symmetry, orthogonality conditions are constructed and GMM estimation is implemented. Valid asymp...

This paper analyses trade specialisation dynamics in two Eastern European countries (Romania and Bulgaria – EEC-2) vis-à-vis the core EU member states (EU-15) over the period 1990-2006. Specifically, we focus on whether there is a shift towards intraindustry trade leading to economic convergence and technological catch-up. We use recently developed static (FEM, REM and FEVD) and dynamic (GMM) p...

The undertaken study assesses the empirical merits of the Post Keynesian doctrine as this is reflected by both the Keynesian as well as the Kaleckian theoretical approaches to investment determination. A GMM panel data methodology provides the econometric platform upon which the respective models have been tested. Annual time series data has been used, spanning from 1970 to 2005, for the G7 eco...

This paper is concerned about the allocation of households’ consumption expenditure over time in a life cycle environment. We construct a pseudo panel from a time series of cross sections using average cohort procedures. The parameters of a CRRA utility function with socio-demographic dependent marginal utility is then estimated by GMM using an Euler approach. Stochastic dynamic programming tec...

The Japanese electricity industry has experienced regulatory reforms since the mid-1990s. This article measures productivity in Japan’s steam power-generation sector and examines the effect of reforms on the productivity of this industry over the period 1978–2003. We estimate the Luenberger productivity indicator, which is a generalization of the commonly used Malmquist productivity index, usin...

Following the present atmosphere of budgetary cuts we analyze the effects of fiscal consolidation on the composition of government expenditures by functions. Using a dynamic voter group decision model and exploiting the panel structure of the dataset – 26 OECD countries over the period 1970-1997by GMM estimation we find that fiscal adjustments protect social expenditure. Nevertheless, we find t...

11 THE GMM ESTIMATION 2 11.1 Consistency and Asymptotic Normality . . . . . . . . . . . . . . . . . . . . . 3 11.2 Regularity Conditions and Identification . . . . . . . . . . . . . . . . . . . . . 4 11.3 The GMM Interpretation of the OLS Estimation . . . . . . . . . . . . . . . . . 5 11.4 The GMM Interpretation of the MLE . . . . . . . . . . . . . . . . . . . . . . . 6 11.5 The GMM Estimation ...

It is well-known that the performance of acoustic-to-articulatory inversion improves by smoothing the articulatory trajectories estimated using Gaussian mixture model (GMM) mapping (denoted by GMM + Smoothing). GMM + Smoothing also provides similar performance with GMM mapping using dynamic features, which integrates smoothing directly in the mapping criterion. Due to the separation between smo...

The intensively debated issue of whether trade globalization leads to a race (climb) the bottom (top) such that environmental policy stringency is loosened (strengthened) still far from being uncontroversial. This paper provides new empirical evidence standpoint North (advanced) countries using both generalized methods moment (GMM) and GMM quantile estimators for dynamic panel data models. It f...