The gravity model has long been used for modelling and predicting trade flows. This paper generalises the gravity model allowing for proper representation of local and target country effects and also the business cycle. The new approach is based on a panel data framework (instead of a simple...

Since the early seventies an increasing attention has been paid to the impact environmental policy might have on foreign trade. One of the most important issues is whether countries with relatively strict environmental regulations tend to experience a deterioration of international...

The transition from economic theory to a testable form invariably involves the use of certain "simplifying assumptions". However, if these are not valid, misspecified model result. This paper considers consistent estimation of the dynamic panel model which often forms the basis of testable...

The paper presents a monetary model of endogenous growth and specifies an econometric model consistent with this model. The estimation is based on OECD and APEC panel data, from 1961-1997. It includes fixed country and time heterogeneity and shows a strong negative effect of inflation on growth...

Transition from economic theory to a testable form of model invariably involves the use of certain "simplifying assumptions." If, however, these are not valid, misspecified models result. This article considers estimation of the dynamic linear panel data model, which often forms the basis of...