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A space-time filter for panel data models containing random effects

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Author Info
Olivier Parent
James P. Lesage ()

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Abstract

A space-time filter structure is introduced that can be used to accommodate dependence across space and time in the error components of panel data models that contain random effects. This general specification encompasses several more specific space-time structures that have been used recently in the panel data literature. Markov Chain Monte Carlo methods are set forth for estimating the model which allow simple treatment of initial period observations as endogenous or exogenous. Performance of the approach is demonstrated using both Monte Carlo experiments and an applied illustration.

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File URL: http://www.artsci.uc.edu/collegedepts/economics/research/docs/Wppdf/2009-04.pdf
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Paper provided by University of Cincinnati, Department of Economics in its series University of Cincinnati, Economics Working Papers Series with number 2009-04.

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Length: 42 pages
Date of creation: 2009
Date of revision:
Handle: RePEc:cin:ucecwp:2009-04

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  1. Yu, Jihai & de Jong, Robert & Lee, Lung-fei, 2008. "Quasi-maximum likelihood estimators for spatial dynamic panel data with fixed effects when both n and T are large," Journal of Econometrics, Elsevier, vol. 146(1), pages 118-134, September. [Downloadable!] (restricted)
  2. Magnus, Jan R., 1982. "Multivariate error components analysis of linear and nonlinear regression models by maximum likelihood," Journal of Econometrics, Elsevier, vol. 19(2-3), pages 239-285, August. [Downloadable!] (restricted)
  3. Baltagi, Badi H. & Heun Song, Seuck & Cheol Jung, Byoung & Koh, Won, 2007. "Testing for serial correlation, spatial autocorrelation and random effects using panel data," Journal of Econometrics, Elsevier, vol. 140(1), pages 5-51, September. [Downloadable!] (restricted)
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This page was last updated on 2009-11-26.


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