Burdisso, Tamara; Sangiácomo, Máximo - 2015
The document focuses on the econometric treatment of macro panels, known in literature as panel time series. This new … approach rejects the assumption of slopes' homogeneity and handles nonstationarity. It also recognizes that the presence of … unobservable common factors, squanders efficiency gains by operating with a panel. This led to a new set of estimators known in …