This paper proposes a new approach to estimate panel data models with group specific parameters when group membership is not known. We first create a set of “pseudo” threshold variables based on time series estimation of the individual specific parameters. We then use these variables to stratify individuals. The problem of parameter heterogeneity is turned into estimation of a panel threshold m...

Krol (1996) reports estimates of the saving-investment correlation, based on panel regressions, that are much lower than commonly found in the literature. This note argues that this low estimate is not related to the panel estimation technique, as Krol claims, but largely to the inclusion of Luxembourg in the sample. Panel estimation only reduces the correlation’s estimate by about 0.12. Octobe...

A panel of industrial countries is examined for evidence of `tax smoothing’. Tax smoothing results when governments minimize tax distortions over time. The model provides a positive theory of government debt and is due primarily to Barro. Unit root tests are performed in panel data to test the null hypothesis of nonstationary tax rates. Panel regressions are then undertaken to test the null hyp...

This paper uses panel data between 2000 and 2010 to explore how firm ownership and regional industrial structures contribute to regional innovation performance in Chinese provinces. Specifically, we explore how the extent of specialization and diversification in regional industrial structures at the province level foster both MAR and Jacobs spillovers, as well as how foreign and state ownership...

Maximum Likelihood Estimation and Lagrange Multiplier Tests for Panel Seemingly Unrelated Regressions with Spatial Lag and Spatial Errors: An Application to Hedonic Housing Prices in Paris This paper proposes maximum likelihood estimators for panel seemingly unrelated regressions with both spatial lag and spatial error components. We study the general case where spatial effects are incorporated...

In presenting evidence in favor of rational partisan cycles, where electoral victories by leftist parties are expected to create temporary expansions and electoral victories by rightist parties are expected to create temporary recessions, Alesina, Cohen, and Roubini (1999) rely upon autoregressive time series intervention regressions. These regressions, however, are not consistent with their mo...

Although much of the recent research has explored relationship between domestic tourism and income inequality among regions, provinces, cities, few studies have examined impact on urban rural areas within a region. This paper uses panel dataset covering China’s 31 provinces for 21 years to investigate spatial spillover effect urban-rural inequality. An increase in revenue neighboring leads redu...

this paper studies the factors influencing divorce rate across the provinces of iran with an emphasis on economic factors, particularly unemployment and inflation. in the literature review, economic as well as psychology literature has been dealt with. to measure the impact of economic factors on divorce rate, unemployment and inflation variables have been examined. the rates of urbanization an...