Monte-Carlo comparison of alternative estimators for dynamic panel data models
Abstract
This paper compares the performance of three recently proposed estimators for dynamic panel data models (LSDV bias-corrected, MLE and MDE) along with GMM. Using Monte-Carlo, we find that MLE and biascorrected estimators have the smallest bias and are good alternatives for the GMM. System-GMM outperforms the rest in ‘difficult’ designs. Unfortunately, bias-corrected estimator is not reliable in these designs which may limit its applicability.Download Info
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Paper provided by Maastricht : METEOR, Maastricht Research School of Economics of Technology and Organization in its series Research Memoranda with number 014.Length:
Date of creation: 2006
Date of revision:
Handle: RePEc:dgr:umamet:2006014
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Web page: http://www.maastrichtuniversity.nl/web/UMPublications.htm
Related research
Keywords: econometrics;Other versions of this item:
- Boris Lokshin, 2007. "A Monte Carlo comparison of alternative estimators for dynamic panel data models," Applied Economics Letters, Taylor and Francis Journals, vol. 15(1), pages 15-18.
- Lokshin, Boris, 2008. "A Monte Carlo comparison of alternative estimators for dynamic panel data models," Open Access publications from Maastricht University urn:nbn:nl:ui:27-20505, Maastricht University.
- NEP-ALL-2006-04-29 (All new papers)
- NEP-ECM-2006-04-29 (Econometrics)
- NEP-ETS-2006-04-29 (Econometric Time Series)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Richard, Patrick, 2009.
"Modified fast double sieve bootstraps for ADF tests,"
Computational Statistics & Data Analysis,
Elsevier, vol. 53(12), pages 4490-4499, October.
- Patrick Richard, 2008. "Modified Fast Double Sieve Bootstraps for ADF Tests," Cahiers de recherche 08-17, Departement d'Economique de la Faculte d'administration à l'Universite de Sherbrooke.
- Petreski, Marjan, 2009. "Analysis of exchange-rate regime effect on growth: theoretical channels and empirical evidence with panel data," Economics Discussion Papers 2009-49, Kiel Institute for the World Economy.
- SILVESTRINI, Andrea, 2007.
"Testing fiscal sustainability in Poland: a Bayesian analysis of cointegration,"
CORE Discussion Papers
2007080, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
- Andrea Silvestrini, 2010. "Testing fiscal sustainability in Poland: a Bayesian analysis of cointegration," Empirical Economics, Springer, vol. 39(1), pages 241-274, August.
- Andrea, SILVESTRINI, 2007. "Testing fiscal sustainability in Poland : a Bayesian analysis of cointegration," Discussion Papers (ECON - Département des Sciences Economiques) 2007040, Université catholique de Louvain, Département des Sciences Economiques.
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