In recent years, analysts and policy makers alike have been evaluating the nexus between exchange rates and macroeconomic stability. Among the most important questions asked is why have some countries adopted rigid, including fixed, exchange-rate regimes, while others have opted for more flexible systems? This paper addresses this question from a political economy perspective, both theoreticall...

We describe four recently developed panel data estimators for unbalanced and nested data, a common problem for economic and experimental data. We estimate a western corn rootworm damage function with each estimator, including separate parameters for random effects from year, location, and experimental errors. We then use each estimator to assess the cost of the western corn rootworm soybean var...

This study investigated the bank-specific and macroeconomic determinants of commercial banks’ liquidity in Ethiopia using secondary unbalanced panel data. The empirical analysis is carried out thro...

This paper analyzes tobacco demand within a discrete choice framework. Using binomial and multinomial logit models with random effects, and an unbalanced panel data set of Norwegian households over a twenty year period, we first consider the decisions a) whether to smoke or not, and b) given the choice is to smoke, whether to smoke hand rolled or manufactured cigarettes. Next, we consider a mul...

Although sample selection bias is a frequent problem of applied research, there has been no generalization of sample selection models with binary dependent variables of interest to data with temporal error correlations. We suggest a generalized estimating equation (GEE) approach to panel data selection models, considering binary responses in both equations. We demonstrate the utility of this mo...

This econometric study assesses the efficiency of the income tax credit system implemented in France in 2005 on households’ retrofitting investment decisions, focusing on insulation measures. A logit model with random individual effects is estimated using an unbalanced panel of 23,879 households surveyed over the period 2002‐2011. An estimation in difference is p...

Environmental protection firms need to improve their ability to access financing while maintaining good economic performance under mounting environmental pressures. After the integration of trade-off and stakeholder theories, we have constructed a number of mathematical models to investigate the relationship among financing decisions, environmental performance (EP), and economic performance. Un...

Notwithstanding it was originally proposed to estimate Error Component Models (ECM) using balanced panels, most applications use unbalanced panels. When unbalanced panels include both time and individual random effects, special computational problems arise. Wansbeek and Kapteyn (1989) analyze algorithms for estimating unbalanced two-way ECM; Baltagi et al. (2002) compares three classes of estim...