This paper considers methods for estimating the slope coe¢ cients in large panel data models that are robust to the presence of various forms of error cross section dependence. It introduces a general framework where error cross section dependence may arise because of unobserved common e¤ects and/or error spillover e¤ects due to spatial or other forms of local dependencies. Initially, this pape...

The productive efficiency of a firm can be seen as composed of two parts, one persistent and one transient. The received empirical literature on the measurement of productive efficiency has paid relatively little attention to the difference between these two components. Ahn, Good and Sickles (2000) suggested some approaches that pointed in this direction. The possibility was also raised in Gree...

This paper uses panel data from African countries and a dynamic panel data (DPD) estimator to investigate the effects of health aid on health outcomes as well as the effects of health aid on health expenditures from domestic resources. I find that health aid has a small but statistically significant positive impact on health outcomes in African countries. Health aid is found to be more effectiv...

In this paper we investigate how life satisfaction (or happiness) is affected by a substantial increase in real income. Our context is East Germany in the decade following reunification, and we implement a new fixed-effect estimator for ordinal life satisfaction and develop a decomposition approach that accounts for new entrants and panel attrition. Using data from the German SocioEconomic Pane...

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...

The paper considers panel data methods for estimating ordered logit models with individual-specific correlated unobserved heterogeneity. We show that a popular approach is inconsistent, whereas some consistent and efficient estimators are available, including minimum distance and generalized method-of-moment estimators. A Monte Carlo study reveals the good properties of an alternative estimator...

When analyzing panel data using regression models, it is often reasonable to allow for time-varying covariate effects. We propose a novel approach to modelling timevarying coefficients in panel data regressions, which is based on penalized regression techniques. To illustrate the usefulness of this approach, we revisit the well-known empirical puzzle of the ‘death of distance’ in international ...

We complement existing inferential theory for panel factor models by deriving the asymptotics for the …rst di¤erences of the estimated factors and common components obtained from a non-stationary panel factor model. As an application, we propose an estimator for the long run variance of the common components. JEL Classi…cation: C13, C23. Keywords: Non-stationary panels, common factors, common c...

Abstract The circumstances of the SSA region regarding inflow foreign direct investment (FDI) present a puzzle. In spite high rate return on investment, investments keeps eluding region, and COVID-19 pandemic even perplexes flow fragility more. What factors then determine FDI flows aside from investment? Could there be more persuasive relative cost complexes? study aimed at testing effects dete...

BACKGROUND Over the last decade there has been an increase in healthcare expenditures while at the same time the inequity in distribution of resources has grown. These two issues have urged the researchers to review the determinants of healthcare expenditures. In this study, we surveyed the determinants of health expenditures in Economic Cooperation Organization (ECO) countries. METHODS We us...