To Pool Or Not To Pool: Homogeneous Versus Hetergeneous Estimations Applied to Cigarette Demand

Badi Baltagi, James M. Griffin and Weiwen Xiong

The Review of Economics and Statistics, 2000, vol. 82, issue 1, 117-126

Abstract: This paper reexamines the benefits of pooling and, in addition, contrasts the performance of newly proposed heterogeneous estimators. The analysis utilizes a panel data set from 46 American states over the period 1963 to 1992 and a dynamic demand specification for cigarettes. Also, the forecast performance of the various estimators is compared. © 2000 by the President and Fellows of Harvard College and the Massachusetts Institute of Technology

Date: 2000
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