in recent years, economists have paid attention to the relationship between emotions and productivity. economists investigated the bi-directional effect of emotion and subjective well-being, such as happiness, on different economic variables, such as productivity, health, income, and so on. in this paper, we try to study the effect of income on labour force happiness in iran. for this purpose, ...

The direction of the causality between energy consumption and income is an important issue in the fields of energy economics, economic growth, and policies toward energy use. The seminal work on the relations between energy consumption and aggregate income is Kraft and Kraft (1978). An extensive literature has followed on, including Akarca and Long (1980), Yu and Choi (1985), Erol and Yu (1988)...

The asymptotic distribution of all unit root test statistics depend on the deterministic specification of the fitted test regression, which need not be equal to the true one. In time series, this implies that different deterministic specifications have their own critical values, whereas in panels, it implies that different specifications have their own mean and variance correction factors. This...

An IV approach, using as instruments nonlinear transformations of the lagged levels, is explored to test for unit roots in panels with general dependency and heterogeneity across cross-sectional units. We allow not only for the cross-sectional dependencies of innovations, but also for the presence of cointegration across cross-sectional levels. Unbalanced panels and panels with differing indivi...

An IV approach, using as instruments nonlinear transformations of the lagged levels, is explored to test for unit roots in panels with general dependency and heterogeneity across cross-sectional units. We allow not only for the cross-sectional dependencies of innovations, but also for the presence of cointegration across cross-sectional levels. Unbalanced panels and panels with differing indivi...

This paper proposes a new test for cross-sectional dependence in …xed e¤ects panel data models. It is well known that ignoring cross-sectional dependence leads to incorrect statistical inference. In the panel data literature, attempts to account for cross-sectional dependence include factor models and spatial correlation. In most cases, strong assumptions on the covariance matrix are imposed. A...

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

This paper considers the problem of testing for cross section independence in limited dependent variable panel data models. It derives a Lagrangian multiplier (LM) test and shows that in terms of generalized residuals of Gourieroux, Monfort, Renault and Trognon (1987) it reduces to the LM test of Breusch and Pagan (1980). Due to the tendency of the LM test to over-reject in panels with large N ...

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)....