Much of the analysis of panel data has been based on an assumption of strict exogeneity. Distributions are specified for outcome variables conditional on a latent individual effect and conditional on observed predictor variables at all dates, with the future values of the predictor variables...

In der letzten Dekade wurde (nicht nur) in Deutschland eine Reihe von Maßnahmen zur Erhöhung der weiblichen Erwerbsbeteiligung eingeführt (Ausbau der Kinderbetreuungseinrichtungen, Elterngeld etc.). Während sich die Erwerbsquote der Frauen deutlich erhöht hat, fallen die Effekte auf das...

Using firm-level data for Belgium, we study the validity of Hicks neutrality in several sectors that cover the spectrum of knowledge intensity. We find that Hicks neutrality is clearly not supported by the data in different sectors. The results are not sensitive to altering the specification of...

The current study examines the relationship between the world oil price and aggregate demand in a developing country, Ghana, via the interest rate channel by means of cointegration analysis. Results of the study indicate that oil price - by impacting the price level positively - negatively...

We propose a microeconomic foundation of the multiplier effect and that of the consumption function using a dynamic optimization model that explains a shortage of aggregate demand and unemployment. We show that government purchases boost aggregate demand through a multiplier-like process but...

This paper develops a neo-Kaleckian endogenous growth model that incorporates aggregate supply - demand balance and balance between labor force and employment growth. The paper explicitly models income distribution which is a critical channel whereby unemployment affects investment and growth....

Households in some European countries increased their indebtedness massively over the past 20 years. Besides household debt, also government debt and corporate debt are in some countries at levels not seen before. While there is a common agreement that these high debt levels are not sustainable...

A large literature on persistence finds that many modern outcomes strongly reflect characteristics of the same places in the distant past. These studies typically combine unusually high t statistics with severe spatial autocorrelation in residuals, suggesting that some findings may be artefacts...

We develop a practical way of addressing the Errors-In-Variables (EIV) problem in the Generalized Method of Moments (GMM) framework. We focus on the settings in which the variability of the EIV is a fraction of that of the mismeasured variables, which is typical for empirical applications. For...