Bootstrap-based corrections for LS and IV estimators in dynamic panels

01 October 2008 → 01 September 2011
Regional and community funding: Special Research Fund
Research disciplines
  • Social sciences
    • Applied economics
    • Economic development, innovation, technological change and growth
    • Economic history
    • Macroeconomics and monetary economics
    • Microeconomics
    • Tourism
bootstrap bias correction economic growth Convergence Monte Carlo simulation LSDV estimator dynamic panel data models
Project description

The LSDV estimator is known to be strongly biased in dynamic panels. The goal of this project is to investigate the performance of a boostrap-based bias correction for models with higher order dynamics and a vector of (endogenous) explanatory variables. Furthermore, we explore alternative ways to estimate the long-term impact. Finally, we want to apply our findings to the convergence debate.