This paper studies the impact of the local industrial structure on employment dynamics in Germany. Local employment growth is decomposed into internal growth resulting from employment changes in existing plants and external growth, which is determined by employment decisions of newly established plants. The dynamics of both components are estimated simultaneously, taking explicitly into account...

In the first half of the paper I study spurious regressions in panel data. Asymptotic properties of the least-squares dummy variable (LSDV) estimator and other conventional statistics are examined. The asymptotics of LSDV estimator are different from those of the spurious regression in the pure time-series. This has an important consequence for residual-based cointegration tests in panel data, ...

Using a rich panel data set, we provide a rigorous analysis of the relationship between access to external finance, foreign direct investment and the exports of private enterprises in China. We conclude that, in order to foster the exports of indigenous enterprises, the elimination of financial discrimination against private firms is likely to be a more effective policy tool than the reliance o...

In this paper we demonstrate that the menu-cost model implies asymmetric price adjustment to nominal demand shocks and that the asymmetry is linked to the elasticity of demand and menu costs. These are tested using manufacturing and retailing panel data for the OECD countries. The empirical results give strong support to the menu-cost model. JEL Classification: E3, L16 * Comments from Fhahad Kh...

This paper reports on an experiment designed to analyze information revelation in sequential guessing games. We observe a remarkable frequency of equilibrium outcomes. Deviations from the equilibrium are explained by learning considerations. By means of applying panel data econometric techniques, we find the presence of error cascades, which represent the situation where the deviation from lear...

To what degree can labor reallocation mitigate the economic consequences of weather-driven agricultural productivity shocks? I estimate that temperature-driven reductions in demand for India are associated with increases nonagricultural employment. This suggests ability sectors to absorb workers may play a key role attenuating shocks. Exploiting firm-level variation propensity workers, relative...

This study examines the effects of taxes on the real exchange rate through their marginal impacts on economic activity. We develop a model that shows that an increase in the capital interest tax rate leads to real domestic currency depreciation while an increase in wage or consumption tax rates lead to a real domestic currency appreciation. These theoretical findings are supported by an empiric...

Government Decentralization as a Disincentive for Transnational Terror? An Empirical Analysis Using panel data for a maximum of 109 countries over the years 1976-2000, we empirically analyze the impact of decentralization on the occurrence of transnational terror. Our results show that expenditure decentralization reduces the number of transnational terror events in a country, while political d...

distribution and diversity of income in rural regions according to the characteristics of households and in the framework of sustainable livelihood must be investigated. in this study, in order to investigate the status of income distribution and diversity and its impact on the economy of rural households in alamout region multinomial logit model has been used. the required dates are related to...

The Persistence of Informality: Evidence from Panel Data Informality is a growing phenomenon in the developing and transition country labor market context. In particular, it is noticeable that working in an informal employment relationship is often not temporary. The degree of persistence of informality in the labor market might be due to different sources: structural state dependence due to pa...