This study suggests a two-step approach to identifying and interpreting regional convergence clubs in Europe. The first step calculates Bayesian probabilities for various assignments of regions to two clubs using a general stochastic space-time dynamic panel relationship between growth rates and initial levels of income as well as endowments of physical, knowledge and human capital. This approa...

It is of vital importance to examine the relationship between pensions and household consumption/saving because this forms a link between social policy and economic development. Based on theories of absolute income, permanent income, and the life-cycle hypothesis, this paper constructs panel data models to investigate the effect of public pension participation and benefit level on household con...

Nowadays, with the green economy becoming mainstream in the world, an industrial revolution as the core of green development has emerged. Based on the empirical evidence from China’s 30 provinces, this study establishes an evaluation index system of China’s industrial green development and applies the analytic hierarchy process to determine the indices’ weights and properties to measure the lev...

Because serial correlation in linear panel-data models biases the standard errors and causes the results to be less efficient, researchers need to identify serial correlation in the idiosyncratic error term in a panel-data model. A new test for serial correlation in randomor fixed-effects one-way models derived by Wooldridge (2002) is attractive because it can be applied under general condition...

The paper addresses the issue of the driving forces behind recent changes in labour market entry outcomes in Europe. Based on data for 12 European countries from the 1988-1997 European Community Labour Force Survey, the empirical analyses estimate panel data models to assess the effects of cyclical changes in aggregate economic conditions, changing youth cohort sizes, increasing educational exp...

We propose conditions under which parameters of fixed-effect dynamic models are identified with unequally spaced panel data. Under predeterminedness, weak stationarity, and empirically testable rank conditions, AR(1) parameters are identified given the availability of ‘‘two pairs of two consecutive time gaps’’, which generalizes ‘‘two pairs of two consecutive time periods’’. This result extends...

Increasing evidence from the empirical economic and psychological literature suggests that positive and negative well-being are more than opposite ends of the same phenomenon. Two separate measures of the dependent variable may therefore be needed when analyzing the determinants of subjective well-being. We investigate asymmetries in the effect of income on subjective well-being with a single-i...

In this paper we demonstrate that standard methods of asymptotic inference will break down in a binary choice duration model in a time series setting. This comes about because the dependent variable has a degenerate limit distribution, which makes the asymptotic variance-covariance matrix singular. This result has implications for discrete choice duration panel data models under large N and T a...