Article history: Received 7 August 2008 Received in revised form 23 April 2009 Accepted 28 April 2009 Available online 5 May 2009

This paper examines whether foreign aid, together with other economic, social and environmental factors, contributes to sustainable development. It starts with a theoretical model where sustainable development is modelled as a different kind of growth that protects the environment. Using factor analysis and newly developed estimation methods for a dynamic panel data model with endogenous regres...

While many studies have affirmed the contributions of information technology (IT) to business value, people are not convinced. So far IT in the service industry has not yet been seen to be more productive. The data in most previous studies either focus on specific industries or exclude financial industry data. As such, the need to do an analysis on IT productivity in the service industry is imm...

This paper reexamines the determinants of firm performance and, in particular, the role that firm size plays in profitability. A fixed-effects dynamic panel data model for over 7,000 US publicly-held firms during the period 1987–2006 provides evidence that profit rates are positively correlated with firm size in a non-linear manner, holding an array of firmand industry-specific characteristics ...

In the present note we demonstrate how to implement the Lee and Yu (2010) procedure for fixed effects spatial panel data models available from the R (R Development Core Team 2012) package splm (Millo and Piras 2012). Additionally, we also show how to compute the impact estimates introduced by Kelejian, Tavlas, and Hondroyiannis (2006) and formalized in LeSage and Pace (2009). Unlike Matlab (MAT...

This paper examines the relationship between various types of corn research and development (R&D) and corn prices in the United States through a fixed effects panel data model. This research explores R&D investment from both nonprofit and for-profit institutions and the effect these have corn prices. In addition, we look at the effect that corresponding exogenous changes in corn prices have on ...

In this paper, we examine the specification tests which have been proposed for fixed effects in binary panel data model, using several different data generating processes to evaluate the performance of the specification test in different situations. By simulations, we find the specification test based on moment conditions is able to outperform the Lagrange multiplier test proposed by Gurmu (199...

T.W. Anderson and his collaborators have made seminal contributions to inference with instrumental variables and to dynamic panel data models. We review these contributions and the extensive economic and statistical literature that these contributions spawned. We describe our recent work in these two areas, presenting new approaches to (a) making valid inferences in the presence of weak instrum...

splm is an R package for estimating and testing various spatial panel data specifications. We consider the implementation of both maximum likelihood and generalized moments estimators in the context of fixed as well as random effects spatial panel data models. This paper is a general description of splm and all functionalities are illustrated by application to Munnel (1990) data on 48 US States...

The paper shows that poor identifiability of parameters can arise in the context of linear panel data model with random effects and autocorrelated disturbances. This causes problems when estimating the model by (Gaussian) maximum likelihood. Corner solutions occur quite frequently for the variance of the random effects, with a consequent bimodal distribution of the other variance and of the aut...