This paper develops a unified framework for fixed and random effects estimation of higher-order spatial autoregressive panel data models with spatial autoregressive disturbances and heteroskedasticity of unknown form in the idiosyncratic error component. We derive the moment conditions and...

assessing the decreasing role of geographical distance (as a result of globalisation) in the world economy spatial econometric techniquesDecreasing role of distance increasing importance of financial openness as channel of spillovers aross countries

The widespread use of composite indices has often been motivated by their practicality to quantify qualitative data in an easy and intuitive way. At the same time, this approach has been challenged due to the subjective and partly ad hoc nature of computation, aggregation and weighting...

This paper considers alternative methods to estimate econometric models based on bilateral data when only aggregate information on the dependent variable is available. Such methods can be used to obtain an indication of the sign and magnitude of bilateral model parameters and, more importantly,...

This paper revisits the effect of globalization on the output-inflation trade-off, using a new data set of 1114 sacrifice and benefice ratios for a large cross-section of 118 countries over the time period 1966−2007, which is calculated following the approach of Jordan (1997). In line with...

We analyse the adjustment dynamics from a short-term to a medium-term equilibrium in a standard AS-AD model à la Blanchard (2006, Macroeconomics, 4th edn, Prentice-Hall, Upper Saddle River, NJ) for an open economy with fixed and flexible exchange rates. An explicit analysis suggests the local...