In the present paper it will be shown empirically that smoking decreases labour productivity. Panel data analysis is …

We provide new cross-country evidence on smoking persistence in Europe, which can be due to both true state dependence … and individual unobserved heterogeneity. We distinguish between the two by using semi-parametric panel data selection … methods, applied to both the smoking participation and the cigarette consumption decision. We find that for both smoking …

its use of a dynamic model - the inclusion of a lagged dependent variable - and its approach to estimation. By way of … critique, the authors highlight general issues regarding dynamic panel analysis that are still less fully appreciated in the … methodological issues arising from dynamic estimation may be of practical assistance to researchers new to the field and/or to …

employment of General Method of Moments (GMM) estimation. …