While general equilibrium theories of trade stress the role of third-country effects, little work has been done in the empirical foreign direct investment (FDI) literature to test such spatial linkages. This paper aims to provide further insights into long-run determinants of Spanish FDI by...

This paper develops consistency and asymptotic normality of parameter estimates for a higher-order spatial autoregressive model whose order, and number of regressors, are allowed to approach infinity slowly with sample size. Both least squares and instrumental variables estimates are examined,...

Spatial inequality in global economic development has left Africa with the least progress in improving living standards among developing regions of the world. Moreover, there are strong neighborhood effects within Africa. This paper revisits the explanation of unequal growth across countries in...

I propose a nonparametric iid bootstrap that achieves asymptotic refinements for t tests and confidence intervals based on GMM estimators even when the model is misspecified. In addition, my bootstrap does not require recentering the moment function, which has been considered as critical for...

This paper examines the role of cross-sectional heterogeneity for estimating the euro's effect on euro-area trade. In the empirical analysis, the impact of trade costs on trade and the transition dynamics to the new monetary regime can vary cross-sectionally in trade sectors and country pairs....

This chapter presents a unified set of estimation methods for fitting a rich array of models describing dynamic relationships within a longitudinal data setting. The discussion surveys approaches for characterizing the micro dynamics of continuous dependent variables both over time and across...

Dealing with endogenous regressors is a central challenge of applied research. The standard solution is to use instrumental variables that are assumed to be uncorrelated with unobservables. We instead assume (i) the correlation between the instrument and the error term has the same sign as the...

The standard approaches used in the empirical literature to test economic convergence-divergence between countries and regions are all grounded on the Mankiw-Romer-Weil and Barro-Sala-i-Martin contributions that led to the celebrated b-convergence model. Such a model, however, presents strong...

Predictions of future land use areas are an important issue as land use patterns significantly impact environmental conditions (biodiversity, water pollution, soil erosion, and climate change) as well as economic and social welfare. In order to improve the prediction accuracy of aggregated land...