This paper is a substantially revised version of our earlier working paper, "Truth and Robustness in Cross-country Growth Regressions." The most important revisions concern the handling of missing observations in the cross-country data set. In the earlier paper, these had been handled through...

This paper examines the asymptotic properties of the popular within, GLS estimators and the Hausman test for panel data models with both large numbers of cross-section (N) and time-series (T) observations. The model we consider includes the regressors with deterministic trends in mean as well as...

The main goal is to develop and, consequently, compare stochastic methods for detection whether a structural change in panel data occurred at some unknown time or not. Panel data of our interest consist of a moderate or relatively large number of panels, while the panels contain a small number...

Surveys in developing countries are often taken at unequally spaced intervals. This paper provides for the estimation of dynamic pseudo-panel models with such data. Non-linear least squares, minimum distance, and one-step estimators are used to impose the non-linear parameter restrictions which...

Tests of misspecification or other defects in microeconometric models are usually numerical and based on an average over the sample. In this paper, it is shown that certain types of misspecification can be concealed by averaging, and a framework is developed which allows the specification to be...

This paper considers various asymptotic approximations in the near-integrated first-order autoregressive model with a non-zero initial condition. We first extend the work of Knight and Satchell (1993), who considered the random walk case with a zero initial condition, to derive the expansion of...

Empirical work on contracts typically regresses contract choice on observed principal and agent characteristics. If (i) some of these characteristics are unobserved or partially observed, and (ii) there are incentives whereby particular types of agents end up contracting with particular types of...

This paper shows that both OLS and Gini regression estimators can be interpreted as weighted averages of slopes of the regression curve, where the weights are derived from the Absolute Lorenz Curve of the independent variable. The instrumental variable estimators, under both approaches, can also...

Empirical work on contracts typically regresses contract choice on observed principal and agent characteristics. If (i) some of these characteristics are unobserved or partially observed, and (ii) there are incentives whereby particular types of agents end up contracting with particular types of...

Multicollinearity hampers empirical econometrics. The remedies proposed to date suffer from pitfalls of their own. The ridge estimator is not generally accepted as a vital alternative to the ordinary least-squares (OLS) estimator because it depends upon unknown parameters. The generalized...