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Identification and Panel Data Models with Endogenous Regressors

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Bhargava, Alok

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Abstract

This paper provides sufficient conditions for the identification of both static and dynamic models containing endogenous regressors from panel data by utilizing the restrictions across time periods on the parameters. It is shown that identification is achieved under quite weak conditions even in the presence of a general pattern of correlation between the errors and the time-varying variables. Efficient estimation procedures for the models considered and some specification tests are outlined. Finally, static formulations relating individuals' intakes of nutrients in the previous twenty-four hours to household income are estimated using (ICRISAT) panel data from rural India. Copyright 1991 by The Review of Economic Studies Limited.

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Article provided by Blackwell Publishing in its journal Review of Economic Studies.

Volume (Year): 58 (1991)
Issue (Month): 1 (January)
Pages: 129-40
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Handle: RePEc:bla:restud:v:58:y:1991:i:1:p:129-40

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  1. Bhargava, Alok, 2008. "Globalization, Literacy Levels, and Economic Development," Working Papers RP2008/04, World Institute for Development Economic Research (UNU-WIDER). [Downloadable!]
  2. Davies, Stephen P. & Erickson, Kenneth & Vickner, Steve & Hoag, Dana & Nehring, Richard, 2005. "An Error-Components Three-Stage Least-Squares Model of Investment Allocation by Farm Households," 2005 Annual meeting, July 24-27, Providence, RI 19249, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association). [Downloadable!]
  3. Sonia R Bhalotra, 2000. "Is Child Work Necessary?," STICERD - Development Economics Papers 26, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE. [Downloadable!]
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