I analyze the effect of inequality on growth over different time-frames. In a large cross-country dataset for the period 1950-2007 I find evidence of a short-run (5-year periods) and medium-run (10-year periods) inverse-U relationship between inequality and growth. In the long-run (20-year periods), however, inequality has a negative effect on growth in poor countries, and a positive effect in ...

The paper evaluates the effect of the FAMEX export promotion program in Tunisia on the export performance of beneficiary firms using firm-level data. Propensity-score matching difference-indifference and weighted least squares estimates suggest that beneficiaries expand at the intensive and the extensive margin (markets and products). However, this expansion is short-lived for total exports. Ou...

In this paper we take up Bayesian inference for the consumption capital asset pricing model. The model has several econometric complications. First, it implies exact relationships between asset returns and the endowment growth rate that will be rejected by all possible realizations. Second, it was thought before that it is not possible to express asset returns in closed form. We show that Labad...

We propose a panel data estimator that leaves the relationship between observables and unobservables unrestricted, while allowing for flexible time-varying patterns of heterogeneity. Our approach restricts the support of unobserved heterogeneity, effectively assuming that individual units belong to a small number of groups. The “grouped fixed-effects” estimator that this paper introduces is sho...

Several empirical studies are concerned with measuring the effect of currency and current account crises on economic growth. Using different empirical models this paper serves two aspects. It provides an explicit assessment of country specific factors influencing the costs of crises in terms of economic growth and controls via a treatment type model for possible sample selection governing the o...

This paper considers estimation of a "xed-e!ects version of the generalized regression model of Han (1987, Journal of Econometrics 35, 303}316). The model allows for censoring, places no parametric assumptions on the error disturbances, and allows the "xed e!ects to be correlated with the covariates. We introduce a class of rank estimators that consistently estimate the coe$cients in the genera...

This paper employs quantile panel regression to the study of fuel price elasticities. Contrasting with standard panel approaches, this method reveals the impact of explanatory variables across all points in the conditional distribution of the response variable while controlling for unobserved heterogeneity. Applying quantile panel regression to German household data demonstrates that fuel price...

Traditional empirical strategies for studying convergence—more generally, the dynamics and determinants of economic growth—can be misleading if important, underlying permanent or growth components are stochastically time-varying. This paper documents the degree to which this instability characterizes the data, and then offers an alternative empirical framework. This alternative—directly modelli...

ABSTRACT Past studies have shown that changes in the house price of a region may transmit to its neighbouring regions. The transmission mechanism may follow spatial and temporal diffusion processes. This paper investigates such regional housing market dynamics and interactions among local housing sub-markets in Taipei. The analysis is based on a panel data framework and spatial panel models usi...

Despite a wealth of research on university incubators, science parks, and other attempts at commercialization, there is little consensus on the effectiveness of university-sponsored commercial innovation. We analyze the impact of incubators and other types of facilitators on the quality of innovations produced by US research-intensive academic institutions from 1969 to 2012. Using forward paten...