IDEAS home Printed from https://ideas.repec.org/p/gra/wpaper/10-22.html
   My bibliography  Save this paper

Dynamic panel data: A useful technique in experiments

Author

Listed:
  • Pablo Brañas-Garza

    (GLOBE and Universidad de Granada)

  • Marisa Bucheli

    (Departamento de Economía, Facultad de Ciencias Sociales, UdelaRteresa, Uruguay)

  • Teresa Garcia-Muñoz

    (GLOBE and Universidad de Granada)

Abstract

Numerous experimental studies use a panel approach to analyze repeated experiments involving a large number of periods. They use “static” panel techniques and do not incorporate any temporal dependency (lags) of the dependent variable. This paper introduces dynamic panel data techniques to experimental economists. This is a standard tool in many other fields of economics and might also be useful in our discipline. It uses the lags of the dependent variable as explanatory variables. Although the coefficients on lagged dependent variables might be far from our interest, the introduction of these lags becomes crucial to control for the dynamics of the process. To show the advantages of this technique, we have compared two datasets using static and dynamic panel data. We conclude that the use of dynamic panel data models in the context of experiments allows to unravel new relationships between experimental variables and highlighting new paths in behaviors

Suggested Citation

  • Pablo Brañas-Garza & Marisa Bucheli & Teresa Garcia-Muñoz, 2011. "Dynamic panel data: A useful technique in experiments," ThE Papers 10/22, Department of Economic Theory and Economic History of the University of Granada..
    • Handle: RePEc:gra:wpaper:10/22
    as

    Download full text from publisher

    File URL: http://www.ugr.es/~teoriahe/RePEc/gra/wpaper/thepapers10_22.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hansen, Lars Peter, 1982. "Large Sample Properties of Generalized Method of Moments Estimators," Econometrica, Econometric Society, vol. 50(4), pages 1029-1054, July.
    2. Glenn W. Harrison & John A. List, 2004. "Field Experiments," Journal of Economic Literature, American Economic Association, vol. 42(4), pages 1009-1055, December.
    3. Guillen, Pablo & Fatas, Enrique & Brañas-Garza, Pablo, 2010. "Inducing efficient conditional cooperation patterns in public goods games, an experimental investigation," Journal of Economic Psychology, Elsevier, vol. 31(6), pages 872-883, December.
    4. David Roodman, 2009. "How to do xtabond2: An introduction to difference and system GMM in Stata," Stata Journal, StataCorp LP, vol. 9(1), pages 86-136, March.
    5. Glenn Harrison, 2007. "House money effects in public good experiments: Comment," Experimental Economics, Springer;Economic Science Association, vol. 10(4), pages 429-437, December.
    6. Anderson, T. W. & Hsiao, Cheng, 1982. "Formulation and estimation of dynamic models using panel data," Journal of Econometrics, Elsevier, vol. 18(1), pages 47-82, January.
    7. Blundell, Richard & Bond, Stephen, 1998. "Initial conditions and moment restrictions in dynamic panel data models," Journal of Econometrics, Elsevier, vol. 87(1), pages 115-143, August.
    8. Croson, Rachel & Fatas, Enrique & Neugebauer, Tibor, 2005. "Reciprocity, matching and conditional cooperation in two public goods games," Economics Letters, Elsevier, vol. 87(1), pages 95-101, April.
    9. Holtz-Eakin, Douglas & Newey, Whitney & Rosen, Harvey S, 1988. "Estimating Vector Autoregressions with Panel Data," Econometrica, Econometric Society, vol. 56(6), pages 1371-1395, November.
    10. Anabela Botelho & Glenn W. Harrison & Marc A. Hirsch & Elisabet E. Rutstrom, 2001. "Bargaining behavior, demographics and nationality: a reconsideration of the experimental evidence," NIMA Working Papers 16, Núcleo de Investigação em Microeconomia Aplicada (NIMA), Universidade do Minho.
    11. Arellano, Manuel & Bover, Olympia, 1995. "Another look at the instrumental variable estimation of error-components models," Journal of Econometrics, Elsevier, vol. 68(1), pages 29-51, July.
    12. John List & Todd Cherry, 2000. "Learning to Accept in Ultimatum Games: Evidence from an Experimental Design that Generates Low Offers," Experimental Economics, Springer;Economic Science Association, vol. 3(1), pages 11-29, June.
    13. David Roodman, 2006. "How to Do xtabond2," North American Stata Users' Group Meetings 2006 8, Stata Users Group.
    14. David Cooper & Nick Feltovich & Alvin Roth & Rami Zwick, 2003. "Relative versus Absolute Speed of Adjustment in Strategic Environments: Responder Behavior in Ultimatum Games," Experimental Economics, Springer;Economic Science Association, vol. 6(2), pages 181-207, October.
    15. Manuel Arellano & Stephen Bond, 1991. "Some Tests of Specification for Panel Data: Monte Carlo Evidence and an Application to Employment Equations," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 58(2), pages 277-297.
    16. Windmeijer, Frank, 2005. "A finite sample correction for the variance of linear efficient two-step GMM estimators," Journal of Econometrics, Elsevier, vol. 126(1), pages 25-51, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. S. Bortolotti & M. Casari & F. Pancotto, 2013. "Norms of Punishment in the General Population," Working Papers wp898, Dipartimento Scienze Economiche, Universita' di Bologna.
    2. Ma³gorzata Jab³oñska & Joanna, 2020. "The key factors affecting entrepreneurship: a comparative analysis," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 38(1), pages 125-146.
    3. Mukhopadhyay, Jhuma & Chakraborty, Indrani, 2017. "Foreign institutional investment, business groups and firm performance: Evidence from India," Research in International Business and Finance, Elsevier, vol. 39(PA), pages 454-465.
    4. Zinnia Mitra Bose & Indrani Chakraborty, 2022. "Effects of diversification on firm performance: an analysis of Indian firms," Indian Economic Review, Springer, vol. 57(2), pages 469-511, December.
    5. Nitin Navin & Pankaj Sinha, 2019. "Market Structure and Competition in the Indian Microfinance Sector," Vikalpa: The Journal for Decision Makers, , vol. 44(4), pages 167-181, December.
    6. Elif Guneren Genc & Ozlem Deniz Basar, 2015. "The Impact of the 2008 Crisis on Total Insurers¡¯ Investment Portfolio in Europe: Dynamic Panel Approach," Research in World Economy, Research in World Economy, Sciedu Press, vol. 6(1), pages 208-214, March.
    7. Mehmood, Bilal & Shahbaz, Muhammad & Jiao, Zhilun, 2023. "Do Muslim economies need insurance to grow? Answer from rigorous empirical evidence," The Quarterly Review of Economics and Finance, Elsevier, vol. 87(C), pages 346-359.
    8. mohammed, habib, 2023. "Modeling Determinants of Private Banks Profitability in Ethiopia," MPRA Paper 116817, University Library of Munich, Germany, revised 25 Mar 2023.
    9. John C. Ham & Steven F. Lehrer, 2020. "Instrumental variables estimation of a simple dynamic model of bidding behavior in private value auctions," Journal of the Economic Science Association, Springer;Economic Science Association, vol. 6(2), pages 139-155, December.
    10. Vlada Vitunskienė & Akvilė Aleksandravičienė & Neringa Ramanauskė, 2022. "Spatio-Temporal Assessment of Biomass Self-Sufficiency in the European Union," Sustainability, MDPI, vol. 14(3), pages 1-19, February.
    11. Byeong-il, Ahn & Younghyeon, Jeon, 2016. "Does tariff reduction have a positive effect on the world’s grain self-sufficiency?," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235578, Agricultural and Applied Economics Association.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Martikainen, Emmi & Schmiedel, Heiko & Takalo, Tuomas, 2015. "Convergence of European retail payments," Journal of Banking & Finance, Elsevier, vol. 50(C), pages 81-91.
    2. Bakhat, Mohcine & Labandeira, Xavier & Labeaga, José M. & López-Otero, Xiral, 2017. "Elasticities of transport fuels at times of economic crisis: An empirical analysis for Spain," Energy Economics, Elsevier, vol. 68(S1), pages 66-80.
    3. José María ARRANZ & Carlos GARCÍA SERRANO & Virginia HERNANZ, 2013. "Active labour market policies in Spain: A macroeconomic evaluation," International Labour Review, International Labour Organization, vol. 152(2), pages 327-348, June.
    4. Rahman, Mizanur, 2008. "The Impact of a Common Currency on East Asian Production Networks and China’s Exports Behavior," MPRA Paper 13931, University Library of Munich, Germany.
    5. Martin Andersson & Hans Lööf, 2011. "Agglomeration and productivity: evidence from firm-level data," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 46(3), pages 601-620, June.
    6. Sigmund, Michael & Ferstl, Robert, 2021. "Panel vector autoregression in R with the package panelvar," The Quarterly Review of Economics and Finance, Elsevier, vol. 80(C), pages 693-720.
    7. Mustapha Sadni Jallab & Monnet Benoît Patrick Gbakou & René Sandretto, 2008. "Foreign Direct Investment, Macroeconomic Instability And Economic Growth in MENA Countries," Working Papers 0817, Groupe d'Analyse et de Théorie Economique Lyon St-Étienne (GATE Lyon St-Étienne), Université de Lyon.
    8. Seidu, Ayuba & Onel, Gulcan & Moss, Charles Britt, 2018. "Impact of International Remittance on Out-Farm Labor Migration in Developing Countries: A Dynamic Panel Data Analysis," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266531, Southern Agricultural Economics Association.
    9. Björn Alecke & Timo Mitze & Gerhard Untiedt, 2010. "Internal migration, regional labour market dynamics and implications for German East-West disparities: results from a Panel VAR," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 30(2), pages 159-189, September.
    10. Emmanuel Owusu-Sekyere & Reneé van Eyden & Francis M Kemegue, 2014. "Remittances and the Dutch Disease in Sub-Saharan Africa: A Dynamic Panel Approach," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 8(3), September.
    11. Emmi Martikainen, 2014. "Does file-sharing reduce DVD sales?," Netnomics, Springer, vol. 15(1), pages 9-31, July.
    12. Sergi Jiménez-Martín & José M. Labeaga & Majid al Sadoon, 2020. "Consistent estimation of panel data sample selection models," Working Papers 2020-06, FEDEA.
    13. Coletta Frenzel Baudisch, 2018. "Sectoral FDI and the Real Exchange Rate: The Role of Financial Development," MAGKS Papers on Economics 201828, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
    14. Emmanuel Owusu-Sekyere & Francis M. Kemegue & Reneé van Eyden, 2011. "What drives remittance inflows to Sub-Saharan Africa: A Dynamic Panel Approach," Working Papers 262, Economic Research Southern Africa.
    15. Karl BRENKE & Ulf RINNE & Klaus F. ZIMMERMANN, 2013. "Short-time work: The German answer to the Great Recession," International Labour Review, International Labour Organization, vol. 152(2), pages 287-305, June.
    16. Gertjan Dordmond & Heder Carlos Oliveira & Ivair Ramos Silva & Julia Swart, 2021. "The complexity of green job creation: An analysis of green job development in Brazil," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(1), pages 723-746, January.
    17. Demir, Caner & Cergibozan, Raif, 2020. "Does alternative energy usage converge across Oecd countries?," Renewable Energy, Elsevier, vol. 146(C), pages 559-567.
    18. Eric Akobeng, 2017. "Gross Capital Formation, Institutions and Poverty in Sub-Saharan Africa," Journal of Economic Policy Reform, Taylor & Francis Journals, vol. 20(2), pages 136-164, April.
    19. Kraemer-Eis, Helmut & Signore, Simone & Prencipe, Dario, 2016. "The European venture capital landscape: an EIF perspective. Volume I: The impact of EIF on the VC ecosystem," EIF Working Paper Series 2016/34, European Investment Fund (EIF).
    20. Zheng, Xinye & Li, Fanghua & Song, Shunfeng & Yu, Yihua, 2013. "Central government's infrastructure investment across Chinese regions: A dynamic spatial panel data approach," China Economic Review, Elsevier, vol. 27(C), pages 264-276.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gra:wpaper:10/22. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Angel Solano Garcia. (email available below). General contact details of provider: https://edirc.repec.org/data/dtugres.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.