The paper analyzes the existence and impact of …financing constraints as a possiblyserious obstacle to innovation by …firms. Direct measures of fi…nancing constraints areemployed using survey data collected by the Banque de France and Eurostat, whichovercomes the problems with the traditional...

This paper shows how a simple modi…fication of estimators based on the RandomEffects principle can preserve the consistency and asymptotic efficiency of the methodin panel data despite non-ignorable persistent heterogeneity driven by correlationsbetween the heterogeneity and the regressors. The...

The paper discusses the major identi…fication issue of coherency conditions in LDVmodels with endogeneity and flexible temporal and contemporaneous correlations inthe unobservables. Conditions for coherency as discussed in the existing literatureare reviewed and shown to be rather esoteric. Two...

This paper studies the distribution of the classical t-ratio with datagenerated from distributions with no finite moments and shows how classical testing isaspected by bimodality. A key condition in generating bimodality is independence of theobservations in the underlying data generating...

This paper studies the distribution of the classical t-ratio with data generatedfrom distributions with no nite moments and shows how classical testing is affectedby bimodality. A key condition in generating bimodality is independenceof the observations in the underlying data generating process...

This paper focuses on qualitative aspects of financing, investment and output decisions offirms. Such dimensions can be modeled econometrically by means of dynamic limited dependent variables models. We develop a partial equilibrium dynamic stochastic programmingproblem of investment, dividend...

The computational properties of an econometric method are fundamentaldeterminants of its importance and practical usefulness, in conjunction withthe method’s statistical properties. Computational methods in econometricsare advanced through successfully combining ideas and methods in...

We present a dynamic framework for the interaction between borrowing (liquidity) constraints and deviationsof actual hours from desired hours, both measured by discrete-valued indicators, and estimate it as a systemof dynamic binary and ordered probit models with panel data from the Panel Study...