Template-Type: ReDIF-Paper 1.0
Series: Tinbergen Institute Discussion Papers
Creation-Date: 2002-02-06
Number: 02-007/2
Author-Name: Martin A. Carree
Author-Email: carree@few.eur.nl
Author-Workplace-Name: Department of General Economics, Faculty of Economics, Erasmus University Rotterdam, and Maastricht University
Title: Nearly Unbiased Estimation in Dynamic Panel Data Models with Exogenous Variables
Abstract: This paper introduces a new estimator for the fixed effects dynamic panel data model withexogenous variables. This estimator does not share some of the drawbacks of recently developed IVand GMM estimators and has a good performance even in small samples. The nearly unbiased estimatoris derived as a bias correction of the within estimator (least squares dummy variable estimator).The estimator is applied to a model of unemployment dynamics at the U.S. state level for the1991-2000 period.
Classification-JEL: C23
Keywords: panel data; fixed effects; nearly unbiased estimation
File-Url: https://papers.tinbergen.nl/02007.pdf
File-Format: application/pdf
File-Size: 97699 bytes
Handle: RePEc:tin:wpaper:20020007