Approximation formulae are developed for the bias of ordinary andgeneralized Least Squares Dummy Variable (LSDV … proper modelling of thedisturbance covariance structure is indispensable. The biasapproximations are used to construct bias … plausible long-run effects are obtained by the biascorrected estimators. Moreover, bias correction can be substantialunderlining …

corrected versions of it are comparedwith IV and GMM regarding: coefficient bias, accuracy of varianceestimators - both of the … disturbances and of the coefficientestimators - and the actual size of coefficient tests. A reasonablysimple and consistent bias …

of bias of (generalized) MMestimators tends to increase with the number of moment conditions exploited. Forvarious … feedbacks none of the techniques examined dominates. However, asimple bias corrected LS estimator which presupposes strict …

The relative magnitudes are compared of successive terms in a higher-order asymptotic expansion of the bias of the LSDV … estimator in dynamic panels. We find that the leading term accounts for the major part of the actual bias in small samples. This … implies that bias correction procedures can be based on relatively simple bias approximation formulas. …