EconPapers    
Economics at your fingertips  
 

A Monte Carlo study of the BE estimator for growth regressions

Jan Ditzen and Erich Gundlach ()

Empirical Economics, 2016, vol. 51, issue 1, 31-55

Abstract: Abstract A recent Monte Carlo study claims that the BE estimator outperforms other panel estimators in terms of average estimation bias in a dynamic specification of the Solow model in levels (Hauk and Wacziarg in J Econ Growth 14(2):103–147, 2009). Our simulation results show that the reported performance of the BE estimator depends on the selected parameterization of the data generating process. Using alternative parameter values, a different model specification, and a restricted cross-section estimator, we find that the BE estimator tends to produce a coefficient of the lagged endogenous variable that is biased toward 1.

Keywords: Monte Carlo simulations; Dynamic panel specification; BE estimator; Solow model; Convergence rate (search for similar items in EconPapers)
JEL-codes: C15 C23 O47 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations View citations in EconPapers (3) Track citations by RSS feed

Downloads: (external link)
http://link.springer.com/10.1007/s00181-015-1000-5 Abstract (text/html)
Access to the full text of the articles in this series is restricted.

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:spr:empeco:v:51:y:2016:i:1:d:10.1007_s00181-015-1000-5

Ordering information: This journal article can be ordered from
http://www.springer. ... rics/journal/181/PS2

Access Statistics for this article

Empirical Economics is currently edited by Robert M. Kunst, Badi H. Baltagi, Bertrand Candelon, Subal C. Kumbhakar and Michael Lechner

More articles in Empirical Economics from Springer
Series data maintained by Sonal Shukla ().

 
Page updated 2017-12-08
Handle: RePEc:spr:empeco:v:51:y:2016:i:1:d:10.1007_s00181-015-1000-5