Inference on time-invariant variables using panel data: A pretest estimator

Chatelain, Jean–Bernard; Ralf, Kirsten

doi:10.1016/j.econmod.2021.01.014

Cited by 10 publications

(12 citation statements)

References 21 publications

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“…Table A3 in the Appendix reports the results of the first step of the estimation procedure, following Chatelain and Ralf (2021). It identifies those time-variant variables that can be treated as endogenous in the HT model.…”

Section: Resultsmentioning

confidence: 99%

“…Defining potential endogenous and exogenous time-variant variables in the HT model, requires adopting Chatelain and Ralf's (2021) two-step procedure. This procedure identifies the nature of the variables in the model and avoids possible variable bias.…”

Section: Empirical Strategymentioning

confidence: 99%

“…In the first step, we run a random effects model, where all the regressors enter the equation together with the average over time of the time-variant regressors, following a variant of Mundlak's approach (1978). Only the mean regressors which are significant facilitate the identification of those time-variant variables to be treated as endogenous, becoming a sort of internal instrument in the model (Chatelain and Ralf 2021).…”

Section: Empirical Analysismentioning

confidence: 99%

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Alone and lonely. The economic cost of solitude for regions in Europe

Burlina

Rodríguez‐Pose

2023

Environ Plan A

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Solitude is a rising phenomenon in the western world. The share of people affected by solitude has been rising for some time and the Covid-19 pandemic has further brought this trend to the fore. Yet, we know next to nothing about the aggregate subnational economic impact of the rise in solitude. In this paper, we analyse the consequences of solitude on regional economic performance across Europe, distinguishing between two of its key dimensions: alone living, proxied by the regional share of single-person households and loneliness, proxied by the aggregate share of social interactions. We find that solitude has important implications for economic development, but that these go in different directions. While alone living is a substantial driver of economic growth across European regions, high shares of lonely people undermine it. The connection of loneliness with economic growth is, however, dependent on the frequency of in-person meetings, with large shares of the population meeting others socially on a weekly basis, alongside a small percentage of people who never meet others, yielding the best economic returns.

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Section: Resultsmentioning

confidence: 99%

Section: Empirical Strategymentioning

confidence: 99%

Section: Empirical Analysismentioning

confidence: 99%

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Alone and lonely. The economic cost of solitude for regions in Europe

Burlina

Rodríguez‐Pose

2023

Environ Plan A

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“…in which α i is the effect associated with the region-random effect-, and f β, X ð Þ are the characteristics associated with the situation and the region that changes its behavior. Assuming that the region effect (α i ) is constant during the studied period, in R it ¼ ln y it ð ÞÀln y i,tÀ1 À Á , the individual effect does not appear and, therefore, the model to adjust for panel data with some time-invariant covariates included in the vector x i (Chatelain & Ralf, 2021) and more than two measurements in time, is given by:…”

Section: Methodsmentioning

confidence: 99%

Impact of airport policies on regional development. Evidence from the Colombian case

Olariaga

Alonso-Malaver

2022

Regional Science Policy & Practice

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Following the global and regional trend, Colombia liberalized the air transport industry in the early 1990s. With this, an uninterrupted (ongoing to date) development of a set of public policies for this sector started, accompanied by various reforms at the institutional level. These transformations took place following the notion that the Colombian State considers air transport as an essential public service that contributes to the national economic and regional development. Within this package of public air transport policies, airport policies have an essential role, through which a large number of airports in the country were privatized (19 to date), which are distributed, almost homogeneously, throughout the Colombian geography. These privately governed airports are located in large, medium, and small cities, and in regions considered remote and isolated. Therefore, this article analyzes the impact of public air transport policies, with a special emphasis on airport policies, on the country’s territorial connectivity and the socioeconomic development of its regions. To analyze the socioeconomic indicators, the methodology of difference‐in‐differences was used, which is a quasi‐experimental econometric and impact evaluation method.

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“…Static panel data analysis takes time series and cross-sectional data into account concurrently. There are two variations in static panel data models: fixed effects and random effects (Chatelain and Ralf, 2021). Several unobservable factors were linked with the explanatory variables in the method based on fixed effects.…”

Section: Model Specificationsmentioning

confidence: 99%

Macroeconomic cyclical indicators and bank non-performing loans: does country governance matter in African countries?

Ahiase,

Andriana,

Agbemava

et al. 2023

IJSE

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PurposeThe purpose of this paper is to investigate the influence of macroeconomic cyclical indicators and country governance on bank non-performing loans in African countries.Design/methodology/approachData was collected from the 53 African countries covering 2005–2021. The paper develops an empirical model to examine the impact of country governance in reducing macroeconomic cycle-induced adverse effects on bank credit risk. This research estimates Random Effects models and the General Method of Moment to examine the link between microeconomic and governance factors on bank non-performing loans. Stata version 15.1 was used to conduct panel regression analysis.FindingsThe findings of the study revealed that the generalized method of moments findings contributes valuable insights into the persistence of NPLs over time and the specific effects of variables on NPL levels. The study findings highlight that the debt-to-GDP ratio, unemployment, regulatory quality, government effectiveness and inflation have significant relationships with NPLs, shedding light on their specific contributions to credit risk dynamics.Research limitations/implicationsThe focus on a specific set of determinants for NPLs, which may not capture all the factors that influence NPL levels. Thus, the study did not consider the impact of macroeconomic shocks, such as natural disasters or global economic crises, which can have a significant impact on NPLs.Practical implicationsPolicymakers should prioritize maintaining sustainable debt levels, promoting employment growth and controlling inflation rates to mitigate credit risk and reduce nonperforming loans. Also, enhancing regulatory quality and government effectiveness is crucial in ensuring financial stability and minimizing non-performing loans in Africa.Originality/valueThis paper provides a new possible solution to minimise bank non-performing loans risk by examining interactions of country governance regarding the macroeconomic cycle behaviour.Peer reviewThe peer review history for this article is available at: https://publons.com/publon/10.1108/IJSE-11-2022-0729

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Inference on time-invariant variables using panel data: A pretest estimator

Cited by 10 publications

References 21 publications

Alone and lonely. The economic cost of solitude for regions in Europe

Alone and lonely. The economic cost of solitude for regions in Europe

Impact of airport policies on regional development. Evidence from the Colombian case

Macroeconomic cyclical indicators and bank non-performing loans: does country governance matter in African countries?

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