This paper compares generalized method of moments (GMM) and simulated maximum likelihood (SML) approaches to the estimation of the panel probit model. Both techniques circumvent multiple integration of joint density functions without the need to restrict the error term variance- covariance...

We construct a new measure of financial development, through multivariate analysis, which includes several indicators of financial size and efficiency for 134 countries. Based on this broad measure, we assess empirically the determinants of financial development focusing on two factors not yet...

The paper investigates the complex system of causes affecting tropical deforestation at a worldwide level. There is no generally accepted theory in the deforestation literature to indicate which variables should be included in a model of deforestation at an aggregate global level. The paper...

Markov chain Monte Carlo (MCMC) methods have become a ubiquitous tool in Bayesian analysis. This paper implements MCMC methods for Bayesian analysis of stochastic frontier models using the WinBUGS package, a freely available software. General code for cross-sectional and panel data are presented...

Multinational firms are traditionally considered as firms possessing some technological lead and exploiting this proprietary advantage in international markets, but a growing literature has been arguing that multinational firms set up foreign subsidiaries not only as a means to exploit their own...

We use the well known USDA dataset of real exchange rates to address the question of whether PPP holds for agricultural commodities. Both unit root tests and the recently proposed more powerful class of panel unit root tests, which take into account cross-section correlation across the units in...

This paper investigates the extent of per-capita income convergence in regional integration initiatives. Panel unit root testing is performed on 28 regional groupings. There is evidence of convergence in South- South integration, but this might be taking place to the bottom.

The forthcoming eastern enlargement of the European Union is generally perceived to constitute one of the most significant challenges to the process of European integration so far. The economic impact of the enlargement is likely to be considerable. The enlargement, as any other previous...

This paper analyzes disparities among nominal and real exchange rate movements across the Central and Eastern European (CEE) countries from 1991 to 1996. The method of analyzing such processes is to examine whether the differentials of exchange rate changes converge or diverge over time....