This paper shows that popular linear fixed-effects panel-data estimators (first-differences, within-transformation) are biased and inconsistent when applied in a discrete-time hazard setting, that is, one with the outcome variable being a binary dummy indicating an absorbing state, even if the...

In contrast to West Germany, illicit drugs were virtually absent in East Germany until 1990. However, after the collapse of the former GDR, East Germany was expected to encounter a sharp increase in substance abuse. By analyzing individual data, we find that East Germany largely caught up with...

In contrast to West-Germany, illicit drugs were virtually absent in East-Germany until 1990. Yet, after the collapse of the former GDR, East-Germany was expected to encounter a sharp increase in the prevalence of substance abuse. By analyzing individual data, we find that East-Germany largely...

This analysis shows that multivariate generalizations to the classical Heckman (1976 and 1979) two-step estimator that account for cross-equation correlation and use the inverse Mills ratio as a correction-term are consistent only if certain restrictions apply to the true error-covariance...

In contrast to West-Germany, illicit drugs were virtually absent in the East-Germany until 1990. Yet, after the collapse of the former GDR, East-Germany was expected to encounter a sharp increase in the prevalence of substance abuse. By analyzing individual data, we find that East-Germany...