Paper #235

Título:

Convergence in panel data: Evidence from the skipping estimation

Autor:

Etsuro Shioji

Data:

Agosto 1997

Resumen:

This paper demonstrates that, unlike what the conventional wisdom says, measurement error biases in panel data estimation of convergence using OLS with fixed effects are huge, not trivial. It does so by way of the "skipping estimation"': taking data from every m years of the sample (where m is an integer greater than or equal to 2), as opposed to every single year. It is shown that the estimated speed of convergence from the OLS with fixed effects is biased upwards by as much as 7 to 15%.

Palabras clave:

income convergence, panel data estimation, skipping estimation, measurement error biases, small sample biases

Códigos JEL:

O40, C23

Área de investigación:

Macroeconomía y Economía Internacional

Descargar el paper en formato PDF