We propose a consistent test for a linear functional form against a nonparametric alternative in a fixed effects panel data model. We show that the test has a limiting standard normal distribution under the null hypothesis, and show that the test is a consistent test. We also establish the...

This paper extends the partially linear varying coefficient model to contain time trend and nonstationary variables as regressors. We use the profile likelihood method to estimate both time trend coefficient in the linear component and the functional coefficients in the nonlinear component and...

We measured the business-cycle correlations of the real gross domestic product (GDP) growth rates of two cities to capture the degree of segmentation across China's provincial and regional borders. This type of segmentation can be caused by local protectionism as well as other economic and...

We measure the correlations between two cities’ real GDP growth rates (a measure of business cycle correlations) to capture the degree of segmentation across China’s provincial and regional borders. This type of segmentation can be caused by local protectionism as well as other...

<p>This paper introduces bias-corrected estimators for nonlinear panel data models with both time invariant and time varying heterogeneity. These include limited dependent variable models with both unobserved individual effects and endogenous explanatory variables, and sample selection models with...</p>

This paper derives elasticity estimates for the electricity demand of a cross section of residential customers in Medellin, Colombia, where prices follow a rising block scheme. It contrasts methods following Jerry Hausman (1979, 1985) with those based on Harvey Rosen (1976). To resolve the...

This paper surveys the growing literature on diagnostic testing of models based on unit record data. We argue that while many of these tests are produced in a Lagrange multiplier framework they are often more readily derived, and more easily applied, if approached from the conditional moment...

Using detail Australian wool auction data we test for further evidence of pricing anomalies at sequential auctions.