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Throwing Out the Baby with the Bath Water: A Comment on Green, Kim, and Yoon

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  • Beck, Nathaniel
  • Katz, Jonathan N.

Abstract

Donald P. Green, Soo Yeon Kim, and David H. Yoon contribute to theliterature on estimating pooled times-series cross-section models ininternational relations (IR). They argue that such models should beestimated with fixed effects when such effects are statisticallynecessary. While we obviously have no disagreement that sometimes fixedeffects are appropriate, we show here that they are pernicious for IRtime-series cross-section models with a binary dependent variable andthat they are often problematic for IR models with a continuousdependent variable. In the binary case, this perniciousness is theresult of many pairs of nations always being scored zero and hencehaving no impact on the parameter estimates; for example, many dyadsnever come into conflict. In the continuous case, fixed effects areproblematic in the presence of the temporally stable regressors that arecommon IR applications, such as the dyadic democracy measures used byGreen, Kim, and Yoon.

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Bibliographic Info

Article provided by Cambridge University Press in its journal International Organization.

Volume (Year): 55 (2001)
Issue (Month): 02 (March)
Pages: 487-495

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Handle: RePEc:cup:intorg:v:55:y:2001:i:02:p:487-495_44

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Cited by:
  1. Ghimire, Ramesh & Ferreira, Susana, 2013. "Economic Shocks and Civil Conflict: The Case of Large Floods," 2013 Annual Meeting, February 2-5, 2013, Orlando, Florida 142587, Southern Agricultural Economics Association.
  2. Alonso, Sonia & Ruiz, Rubén, 2005. "Political representation and ethnic conflict in new democracies," Discussion Papers, Research Unit: Democracy and Democratization SP IV 2005-201, Social Science Research Center Berlin (WZB).
  3. Bosker, Maarten & de Ree, Joppe, 2010. "Ethnicity and the spread of civil war," CEPR Discussion Papers 8055, C.E.P.R. Discussion Papers.
  4. Clovis Kerdrain & Isabell Koske & Isabelle Wanner, 2011. "Current Account Imbalances: can Structural Reforms Help to Reduce Them?," OECD Journal: Economic Studies, OECD Publishing, vol. 2011(1), pages 1-44.
  5. Binder, Martin & Freytag, Andreas, 2013. "Volunteering, subjective well-being and public policy," Journal of Economic Psychology, Elsevier, vol. 34(C), pages 97-119.
  6. Wolf, Christian, 2009. "Does ownership matter? The performance and efficiency of State Oil vs. Private Oil (1987-2006)," Energy Policy, Elsevier, vol. 37(7), pages 2642-2652, July.
  7. Robst, John & Polachek, Solomon & Chang, Yuan-Ching, 2006. "Geographic Proximity, Trade and International Conflict/Cooperation," IZA Discussion Papers 1988, Institute for the Study of Labor (IZA).
  8. Boyce, Christopher J., 2010. "Understanding fixed effects in human well-being," Journal of Economic Psychology, Elsevier, vol. 31(1), pages 1-16, February.
  9. Tingley, Dustin, 2010. "Donors and domestic politics: Political influences on foreign aid effort," The Quarterly Review of Economics and Finance, Elsevier, vol. 50(1), pages 40-49, February.
  10. Clovis Kerdrain & Isabell Koske & Isabelle Wanner, 2010. "The Impact of Structural Policies on Saving, Investment and Current Accounts," OECD Economics Department Working Papers 815, OECD Publishing.
  11. Troeger, Vera, 2012. "De Facto Capital Mobility, Equality, and Tax Policy in Open Economies," CAGE Online Working Paper Series 84, Competitive Advantage in the Global Economy (CAGE).
  12. Kittel, Bernhard & Winner, Hannes, 2002. "How reliable is pooled analysis in political economy? The globalization welfare state nexus revisited," MPIfG Discussion Paper 02/3, Max Planck Institute for the Study of Societies.
  13. repec:hal:wpaper:hal-00492039 is not listed on IDEAS
  14. Jean-Bernard Chatelain & Kirsten Ralf, 2010. "Inference on Time-Invariant Variables using Panel Data: A Pre-Test Estimator with an Application to the Returns to Schooling," PSE Working Papers hal-00492039, HAL.
  15. Petrit Gashi & Iraj Hashi & Geoff Pugh, 2014. "Export behaviour of SMEs in transition countries," Small Business Economics, Springer, vol. 42(2), pages 407-435, February.

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