This paper empirically identifies a channel through which transport infrastructure improves the efficiency of an economy: reducing inventory stock. To deal with potential endogeneity, we introduce two identification tests. Applying them to a large panel data set on Chinese manufacturers from 1998 to 2007, we find that the dramatic improvement in China’s road transportation network has significa...

This paper explores the substitution relationship between trade credit and bank credit, and its countercyclic dynamic pattern through economic cycles. We propose a new theoretical model, using a mechanism design method, which predicts the substitution between the two credits and its counter-cyclic behavior, subject to the condition of technological efficiency not less than one. This model also ...

Using new and unique panel data, we investigate the role of long-term health and childhood malnutrition in schooling outcomes for children in rural India, many of whom lack basic numeracy and literacy skills. Using data on students’ performance on mathematics and Hindi tests, we examine the role of the endogeneity of health caused by omitted variables bias and measurement error and correct for ...

This paper explores the importance of the risk of violence on the decision making of rural households, using a unique panel data set for Colombian coffee-growers. We identify two channels. First, we examine the direct impact of conflict on agricultural production through the change in the percentage of the farm allocated to coffee. Second, we explore how conflict generates incentives to substit...

This study investigates the Peltzman effects in adopting mandatory seat belt laws in the US. According to the Peltzman offsetting effect theory, seat belt laws make drivers feel more secure and drive more aggressively, which could cause additional crashes and fatalities. A set of panel data containing 50 US states and the District of Columbia for the years from 1983 to 1997 are analyzed using s...

In recent years, aiming to reduce the Greenhouse Gas pollution and promote energy efficiency and conservation among consumers’ energy use, price policies and price changes derived from environmental regulations have played a more important role. In this paper, using the most recent annual state-level panel data for 48 states, I estimate a dynamic partial adjustment model for electricity demand ...

This paper examines the impact of competition on wages and productivity using a panel data set of UK manufacturing industries over 1954-1973. The introduction of cartel law in the UK in the late 1950s caused an intensification of price competition in previously cartelized manufacturing industries, but it did not affect those industries which were not cartelized. The econometric results from a c...

Methods: A range of theoretically grounded socioeconomic indicators were collected from the China Statistical Yearbooks and then factored to reduce the number of highly correlated indicators. Maps were drawn to visualise the spatial patterns of key variables and fixed-effects regressions were run to test relationships between the real per capita provincial GHE and various variables. GMM estimat...

Investor-owned hospital systems have grown rapidly in the 1970s and 1980s. Policy-makers are concerned about the changes in the access to and quality of hospital care that may be caused by this development. These concerns are predicated on the belief that for-profit hospitals perform differently than not-for-profit hospitals. This research examines the economic performance of for-profit and not...

Model uncertainty hampers consensus on the key determinants of economic growth. Some recent cross-country cross-sectional analyses have employed Bayesian Model Averaging to tackle the issue of model uncertainty. This paper extends that approach to panel data models with countryspecific fixed effects in order to simultaneously address model uncertainty and endogeneity issues. The empirical findi...