This paper proposes a variant of the classical HAUSMAN specifi cation test commonly employed to decide whether the estimation of a random-eff ects model is a viable alternative to estimating fi xed eff ects. Whereas the classical test probes the equality of fi xedand random eff ects, the proposed variant focuses on the equality of between-groups and fi xed-eff ects coeffi cients. While both tes...

This paper analyzes an approach to correcting spurious regressions involving unit-root nonstationary variables by generalized least squares (GLS) using asymptotic theory. This analysis leads to a new robust estimator and a new test for dynamic regressions. The robust estimator is consistent for structural parameters not just when the regression error is stationary but also when it is unit-root ...

The paper analyses the impact of geographic innovation on Total Factor Productivity (TFP) in Taiwan. Using 242 four-digit standard industrial classification (SIC) industries in Taiwan in 2001, we compute TFP by estimating Translog production functions with K, L, E and M inputs, and measure the geographic innovative activity using both Krugman's Gini coefficients and the location Herfindahl inde...

Traditional accounts of explanation fail to illuminate the explanatory relevance of “models that are descriptively false” in the sense that the regularities they entail fail to obtain. In this paper, I propose an account of explanation, which I call ‘explanation by concretization’, that serves to explicate the explanatory relevance of such models. Starting from a highly abstract and idealized m...

We prove that a probabilistic average over possible, but not actual, hidden variable distributions maximizes predictive accuracy (defined in terms of the Kullback-Leibler discrepancy) within a context in which only the relative frequencies of hidden variables are known. Our detailed analysis of the Bernoulli model (e. g, coin flipping) reveals striking similarities with the derivation of thermo...

This paper analyses issues related to weak exogeneity in a financial point process. We extend the Hausman test of weak exogeneity in a time series model and propose three cases in which weak exogeneity conditions will break down. The simulation study suggested that a failure of the exogeneity assumption implied biased estimators. The bias is very large in the third case non-weak exogeneity, whi...

Abstrak. Penelitian ini memiliki tujuan mengetahui, menganalisis dan mengdeskripsikan kontribusi penerimaan Pajak Daerah Retribusi terhadap Pendapatan Daerah. Populasi Kabupaten/Kota di Provinsi Jawa Barat adalah sebanyak 18 Kabupaten 9 Kota dengan ketentuan realisisasi APBD tahun 2009 s/d 2018 yang dijadikan sampel pada penelitian yaitu 17 (1 tidak memenuhi syarat telah ditentukan Pangandaran)...

This study aims to analyze the rate of economic growth, human development index, level concern for poor in Central Java Province 2015 – 2020. The type data used this is panel data. tool perform test eviews9. tests were FE, CE, RE, Chou, Hausman, LM, multiple linear regression and normality tests. results show that growth has a significant negative effect where coefficient value -0.043 with prob...

The paper analyses the impact of geographic innovation on Total Factor Productivity (TFP) in Taiwan in 2001 using 242 four-digit standard industrial classification (SIC) industries. We compute TFP by estimating Translog production functions with K, L, E and M inputs, and measure the geographic innovative activity using both Krugman's Gini coefficients and the location Herfindahl index. We also ...

It is widely believed that the inclusion of lagged dependent variables in a panel data model necessarily renders the Random Effects (RE) estimators, based on OLS applied to the quasi-differenced variables, inconsistent. It is shown here that this belief is incorrect under the usual assumption made in this context — i.e., that the other regressors are strictly exogenous. This result follows from...