The primary focus of this article is the provision of tests for additional conditional moment constraints in cross-section or short panel data contexts. The principal contribution is the explicit incorporation of conditional moment restrictions defining the maintained hypothesis in the formulation of the test statistics thus mirroring that of the classical parametric likelihood setting by defin...

This chapter reviews the econometric issues involved in estimating models of the competitive acquisition of military capability. Econometrics involves the synthesis of theory, data and statistical methods thus in reviewing the econometrics of arms races, we will pay as much attention to theory and data as we do to statistical methods. After discussing the choice of data and the theoretical issu...

We modify a previously suggested GMM estimator in a spatial panel regression model by taking into account the difference between disturbances and regression residuals and derive its asymptotic properties. Simulation results and an empirical application to Indonesian rice data illustrate the improvement in finite samples. JEL Classification: C13, C21

Unemployment Persistence: How Important Are Non-Cognitive Skills? Using a random effects dynamic panel data model and the 2000-2008 waves of the German SOEP this paper shows that non-cognitive skills have a predictive power on unemployment transitions. JEL Classification: C33, J64

In this paper, we estimate a health care demand function for 18 OECD countries for the period 1972-1995. We consider a demand side approach where health expenditure depend on per capita GDP and the relative price of health care. We use panel data unit root and stationarity tests to characterize our data. Then, we test cointegration between our variables with Kao[16] panel data cointegration tes...

Using a panel data set of 361 German corporations for the period 1991 to 1996 we test the hypothesis that firms with more efficient governance structures have higher profitabilities. To determine efficiency we compare firms with respect to ownership concentration, the identity of owners, capital structure, investment and firm growth by a multi-input/multi-output Data Envelopment Analysis (DEA)....

This survey aims at providing the reader with a thread through the literature on the topic of panel econometrics of labour supply, reporting also on the evaluation of the data used in these studies, and summarizing their substantive results. It documents the present trend away from models that take advantage of panel data almost exclusively in order to control for unobserved heterogeneity, towa...

This paper advances that the share of European descendants in the population is a major determinant of democracy in former colonial countries. We test this hypothesis using cross-section and panel regressions with 60 developing and developed countries that were once colonies. We …nd that the share of European descendants can explain more than half of the di¤erence in measures of democracy betwe...

The persistence properties of economic time series has been a primary object of investigation in a variety of guises since the early days of econometrics. This paper suggests investigating the persistence of processes conditioning on their history. In particular we suggest that examining the derivatives of the conditional expectation of a variable with respect to its lags maybe a useful indicat...

Preamble These lecture notes were written for a 2nd-year Ph.D. course in econometrics of panel data and limited-dependent-variable-models. The primary goal of the course is to introduce tools necessary to understand and implement empirical studies in economics focusing on other than time-series issues. The main emphasis of the course is twofold: (i) to extend regression models in the context of...