This paper discusses likelihood-based estimation of panel data models with individualspecific effects and both lagged dependent variable regressors and additional predetermined explanatory variables. The resulting new estimator, labeled as sub-system LIML (ssLIML), is asymptotically equivalent to standard panel GMM as N →∞ for fixed T , but tends to present smaller biases in finite samples as i...

This paper investigates the determinants of Spanish vertical intra-industry trade with a large sample of countries. We empirically test the comparative advantage explanation. To this aim, we build physical, human and technological capital stocks. On average, that is using OLS techniques, differences in endowments are a limitation for vertical intra-industry trade. Using quantile regressions tec...

Recent developments in nonlinear panel data analysis allow identifying and estimating general dynamic systems. In this review we describe some results and techniques for nonparametric identification and flexible estimation in the presence of time-invariant and time-varying latent variables. This opens the possibility to estimate nonlinear reduced forms in a large class of structural dynamic mod...

Schultz, Stanley G. A century of (epithelial) transport physiology: from vitalism to molecular cloning. Am. J. Physiol. 274 (Cell Physiol. 43): C13–C23, 1998.—During the past century, the generally accepted view of the function of biological membranes has evolved from that of a static, inert lipoprotein envelope that simply separates the intracellular machinery from the outside milieu, to that ...

Multinational firms pay relatively high wages. Less is known about the wage structure within multinational and non-multinational firms. We examine the impact of acquisitions on wage dispersion in Sweden using a large matched employer-employee data set. Foreign acquisitions of Swedish firms increase wage dispersion by increasing wages for high-skilled workers. The positive impact is concentrated...

This paper considers the estimation of average autoregressive roots-near-unity in panels where the time-series have heterogenous local-to-unity parameters. The pooled estimator is shown to have a potentially severe bias and a robust median based procedure is proposed instead. This median estimator has a small asymptotic bias that can be eliminated almost completely by a bias correction procedur...

In this paper a new method to estimate the equivalence scale elasticity using individual panel data on income satisfaction will be developed. In contrast to other subjective approaches, the present one benefits from the fact that no direct cardinal individual welfare function has to be specified. In addition, panel data enables different scale use by the respondents to be controlled. The approa...

This paper investigates the relationship between electricity demand and temperature in the European Union. We address this issue by means of a panel threshold regression model on 15 European countries over the last two decades. Our results confirm the non linearity of the link between electricity consumption and temperature found in more limited geographical areas in previous studies. By distin...

This paper uses control variables to identify and estimate models with nonseparable, multidimensional disturbances. Triangular simultaneous equations models are considered, with instruments and disturbances independent and reduced form that is strictly monotonic in a scalar disturbance. Here it is shown that the conditional cumulative distribution function of the endogenous variable given the i...

Saving and investment are I(1) processes and generally do not cointegrate. This suggests the need for a nonstationary panel methodology to estimate the long run saving-investment association. We reconsider the Feldstein-Horioka puzzle using a mean group procedure which provides consistent estimates for nonstationary, heterogeneous panels. The resultant slope coe¢cient estimate for 12 OECD econo...