The low-frequency movements of many economic variables play a prominent role in policy analysis and decision-making. We develop a robust estimation approach for these slow-moving trend processes, which is guided by a judicious choice of priors and is characterized by sparsity. We present some...

This paper discusses likelihood-based estimation of linear panel data models with general predetermined variables and individual-specific effects. The resulting (pseudo) maximum likelihood estimator is asymptotically equivalent to standard GMM but tends to have smaller finite-sample biases as...

For a selected group of Latin America countries we estimated the parameters of convergence equations on the basis of annual data. We test cross-country heterogeneity of parameters within a system of Seemingly Unrelated Regression Equations (SURE) that departures from standard approach utilizing...