This paper uses two unique panel data sets to study the causal effect that armed conflict has over entrepreneurial activity in Colombia. Using a fixed effect estimation methodology at the plant level and controlling for the possible endogeneity of armed conflict through the use of instrumental variables, we find that a one standard deviation in the number of guerrilla and paramilitary attacks i...

The Exporter Productivity Premium along the Productivity Distribution: First Evidence from a Quantile Regression Approach for Fixed Effects Panel Data Models An emerging literature on international activities of heterogeneous firms documents that exporting firms are more productive than firms that only sell on the national market. This positive exporter productivity premium shows up in a large ...

Using original French panel data, this paper investigates the relevance of the broken windows theory in case of an offence category featured by the absence of monetary benefits. Estimates from random and fixed effects models highlight the deterrent effect of sanctions for rapes and minor sexual offences. The enforcement activity of rapes is the most deterrent factor both for rapes and other sex...

One of the many changes in India since economic liberalisation began in 1991 is the increased use of private schooling. There has been a growing body of literature to assess whether this is a positive trend and to evaluate the effects on child achievement levels. The challenge is to identify the true private school effect on achievement, isolating the effect of the schools themselves from other...

This study investigates the impact of China’s stock market on firm-level investment by using a panel data set constructed by the author of all Chinese listed firms for the period of 1992 to 1999 and by applying both fixed effects and generalized method of moments (GMM) techniques. The results show that stock market valuation has a highly significant and positive influence on listed firms’ inves...

We propose quasi maximum likelihood (QML) estimation of dynamic panel models with spatial errors when the cross-sectional dimension n is large and the time dimension T is fixed. We consider both the random effects and fixed effects models and derive the limiting distributions of the QML estimators under different assumptions on the initial observations. We propose a residual-based bootstrap met...

This paper surveys recently developed approaches to analyzing panel data with nonlinear models. We summarize a number of results on estimation of fixed and random effects models in nonlinear modeling frameworks such as discrete choice, count data, duration, censored data, sample selection, stochastic frontier and, generally, models that are nonlinear both in parameters and variables. We show th...

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...

China is experiencing urbanization at an unprecedented rate over the last two decades. The overall goal of this paper is to understand the extent of and the factors driving urban expansion in China from the late-1980s to 2000. We use a unique three-period panel data set of high-resolution satellite imagery data and socioeconomic data for entire area of coterminous China. Consistent with a numbe...

Decentralization can improve service delivery, but it can also generate externalities across jurisdictional boundaries. We examine the nature and size of water pollution externalities as rivers flow across jurisdictions. Panel data on water pollution in Brazilian rivers coupled with county splits that change the locations of borders allow us to identify the spatial patterns of pollution as rive...