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학술저널

Common Correlated Effects Estimation of Unbalanced Panel Data Models with Cross-Sectional Dependence

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We consider the estimation and inference of unbalanced panel data models with cross-sectional dependence with a large number of individual units in a relatively short time period. By following the common correlated effects (CCE) approach of Pesaran (2006), we propose a CCE estimator for unbalanced panels (CCE-UB). The asymptotics of the CCE-UB estimator is developed in the paper. Small scale Monte Carlo simulation is conducted to examine the finite sample properties of the proposed estimator.

Abstract

1 Introduction

2 Model and assumptions

3 CCE estimator for unbalance panel with CSD

4 Simulations

5 Conclusion

Appendix

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