Econometrics Models - Panel Data

Food consumption changes in Russia: An analysis of regional demand for herring products

by Sigbjorn Tveteras

Co-authored with Ragnar Tveteras and Kristin Lien

In this paper, we study the effects of large income changes on the consumption of herring products in Russia. Herring... more In this paper, we study the effects of large income changes on the consumption of herring products in Russia. Herring consumption has shifted rapidly from low-value whole herring (WH) to high-value herring fillet products. We estimate regional herring demand using a panel data of household survey data from the seven Russian federal districts. The results show that WH is an inferior good while herring fillet products are normal goods, which implies that continued economic growth will lead to further shift towards value-added products. Furthermore, the most important factor to explain the large regional differences in herring consumption is real income disparities.

Heterogeneity in price setting behavior, spatial disparities and sectoral diversity: Evidence from a panel of Italian firms

by Carlo Migliardo

pubblished in "Economic Modelling" elsevier vol. 29 (4) (2012) pp. 1106-1118

In this paper, we analyze firms' pricing behavior using a full informative micro dataset that accounts for a large... more In this paper, we analyze firms' pricing behavior using a full informative micro dataset that accounts for a large part of Italian firms. In our view, “the black boxes” to examine are the relations between price setting, market structure and spatial disparities. The paper aims to extend the empirical literature in several directions. A first goal of the research is to investigate the link between heterogeneity in price changes and spatial dependence. Besides, we compare the price dynamics among sectors, namely manufacturing vs. service. It is irrefutable that prices stickiness is linked to good market rigidities. Consequently, these issues have extremely important policy implications; for instance, the Monetary Authority considers the macro price indexes in order to determine the right policy to stabilize the economy and to improve social welfare. However, the Central Bank does not distinguish the likely aggregation bias source from the cross sector–region–country heterogeneities.

Overall, the purpose of this paper is to provide an analysis of survey data that allows us to collect important aspects for Economic Policy analysis, which could not be drawn from analysis with “mesoeconomic” or aggregate data. Finally, we provide empirical evidence that price dynamic heterogeneity across geographical areas, as well as disparities across industries, are statistically significant in our microeconometric models. Indeed, the probability that industries in the backward areas change prices is 30% less than in more developed regions (Northeast). In addition, we find that sectoral diversity counts especially across goods and service industries, even if this outcome is not always robust across microeconometric specifications.

Even worse than you thought: The impact of government debt on aggregate investment and productivity

by Simone Salotti

Co-authored with Carmine Trecroci (Universita' di Brescia)

The effects of fiscal decentralization on household income inequality: Some empirical evidence

by Simone Salotti

Co-authored with Agnese Sacchi (Universita' di Roma Tre)

This paper originated from "Income inequality, regional disparities, and fiscal decentralization in industrialized countries"

The equity reasons for fiscal (de)centralization

by Simone Salotti

Co-authored with Agnese Sacchi (Universita' di Roma Tre)

This paper originated from "Income inequality, regional disparities, and fiscal decentralization in industrialized countries"

Assessing the pre-crisis advantages of the EMU for sovereign debt issuers: A panel VAR analysis

by Simone Salotti

Published: Marattin, L., Paesani, P., Salotti, S. (2012). Assessing the pre-crisis advantages of the EMU for sovereign debt issuers: A panel VAR analysis. Rivista di Politica Economica, gennaio/marzo 2012, 7-22.

This is a vastly revised version of "The Euro-dividend: public debt and interest rates in the Monetary Union"

We study the relationship between public debt and real long-term interest rates in the countries currently members of... more We study the relationship between public debt and real long-term interest rates in the countries currently members of the European Monetary Union (EMU) to assess its long-run macroeconomic performance. We employ a panel VAR method using annual data from 1970 to 2008. We find that before the introduction of the euro different levels of public debt affected the responses of the interest rates to debt shocks, with larger effects in high-debt countries relatively to low-debt ones. The inclusion of the EMU years, shows the stabilizing role played by the monetary union in insulating the interest rates from domestic fiscal developments.

Structural unemployment and structural change in Poland

by Francesco Pastore

Co-autherd with Andrew T. Newell.
Studi Economici, 54(69/3): 81-99.

This paper looks at regional unemployment inequality using individual-level data. We find that higher unemployment... more This paper looks at regional unemployment inequality using individual-level data. We find that higher unemployment regions are those with higher inflow rates to unemployment rather than higher durations of unemployment. This indicates that high unemployment is related to high rates of destruction of job-worker matches in Poland. Econometric analysis of the probability of flowing into unemployment from a job reinforces this impression, showing how middle-aged workers in particular and also those in manufacturing are much more likely to enter unemployment if they live in high unemployment counties. These results are evidence against theories of regional unemployment, which work through variations in the rate of job-finding.

Immigration and Tourism Demand: Empirical Evidence from Australia

by Neelu Seetaram

Seetaram, N. (2012). “Immigration and Tourism Demand: Empirical Evidence from Australia” Tourism Management, (in press).

Immigration can potentially influence tourism flows. However, in spite of the vast number of studies on tourism demand... more Immigration can potentially influence tourism flows. However, in spite of the vast number of studies on tourism demand modelling, the immigration-tourism linkage has not received much attention in the empirical literature. This paper seeks to address this gap. A dynamic demand model is developed and estimated using data from 1980 to 2008 for the 15 main markets of Australia. The explanatory variables included are income, own price, price of a substitute destination, airfare and immigration. The estimation results empirically establish the connection between immigration and inbound tourism. The short-run and long-run immigration elasticities generated are 0.028 and 0.09 respectively. Additionally this paper demonstrates that omission of prices of substitutes affects the value of the own price elasticity of demand. The results have implications for future research and for stakeholders who can improve the efficiency of their planning exercises by taking into account additional information on immigration trends.


Keywords: Immigration, Tourism Demand, Dynamic Panel Data, Price of Substitutes, Australia.

Productivity Spillovers from Foreign Direct Investment: What If Productivity is No Longer a Black Box?

by South East Asian Journal of Management (SEAM)

Author: Tran Toan Thang

Institution: Economics Department, the University of Essex, Wivenhow Park, Colchester, CO4 3SQ, United Kingdom, Email: tttran@essex.ac.uk

Suggested Citation: Thang, T. T. (2011) Productivity Spillovers from Foreign Direct Investment: What If Productivity is No Longer a Black Box? South East Asian Journal of Management, 5(1), 1-18, ISSN: 1978-1989.

Abstract:
While the positive productivity spillover from Foreign Direct Investment (FDI) to domestic owned firms... more Abstract:
While the positive productivity spillover from Foreign Direct Investment (FDI) to domestic owned firms in host countries is unequivocally emphasized in theory, the empirical evidence is contradictory. This paper, based on firm level data in Vietnam (enterprise census, 2000-2005), provides more inside on that. Using time-varying stochastic frontier approach, the study decomposed the change of productivity into technical change, technical efficiency change and scale efficiency change. The evidence from estimating the spillovers in each corresponding components suggest that horizontal FDI bring negative spillovers, mainly to technical change but positive spillovers to technical efficiency. Vertical FDI also have mixed impacts to domestic owned firm’s productivity.

Keyword: Stochastic frontier model, foreign direct investment, productivity spillover, panel data

Book Chapter : Panel Data Analysis

by Neelu Seetaram

Seetaram, N. and S. Petit (2012). “Panel Data Analysis” in “Research Methods in Tourism” L. Dwyer, A. Gill, N. Seetaram (eds.), Edward Elgar Publishing, UK. Forthcoming

Keywords: Panel Data, Tourism, Panel Data Cointegration Tourism Demand, Economic Growth and Development. Keywords: Panel Data, Tourism, Panel Data Cointegration Tourism Demand, Economic Growth and Development.

A Study of Outbound Tourism From Australia

by Neelu Seetaram

Seetaram N. (2012), "A Study of Outbound Tourism From Australia" Tourism Economics, 18(5). pp xx. (Forthcoming)

In spite of the vast and growing literature on tourism demand, outbound tourism remains fairly under-researched. This... more In spite of the vast and growing literature on tourism demand, outbound tourism remains fairly under-researched. This paper highlights the usefulness of examining determinants of outbound tourism and develops a comprehensive dynamic demand model for international travel from Australia using panel data cointegration technique. The data used are for 47 destinations from 1991 to 2008. The aim is to compute robust demand elasticities. One of the contributions of this paper is that it demonstrates the role that immigration plays in determining international tourist departures from Australia. The estimated short run and long run immigration elasticities are 0.2 and 0.6 respectively.


Keywords

Outbound Tourism Demand, Australia, Dynamic Panel Data Cointegration, Immigration.

Seetaram N, (2010). Use of Dynamic Panel Cointegration Approach to Model International Arrivals to Australia, Journal of Travel Research 2010 Vol. 49 No. 4 pp. 414-422.

by Neelu Seetaram

Keywords : dynamic panel data panel cointegration tourism demand Australia

The aim of this article is to use dynamic panel data cointegration technique to determine elasticities of tourist... more The aim of this article is to use dynamic panel data cointegration technique to determine elasticities of tourist arrivals to Australia, using income, real exchange rates, and airfares as demand determinants. Annual data from 1991 to 2007 for arrivals from the 10 main markets are used. Previous studies that applied dynamic panel data sets in the tourism context have used the Arellano—Bond estimation technique. Because this technique produces biased and inconsistent estimates in samples with a small time span, this article uses the corrected least square dummy variable technique to generate unbiased and efficient parameter estimates. The results obtained show that demand is inelastic with respect to its determinants in the short run and elastic in the long run. The main implications of these results are that maintaining destination price competitiveness and consumer satisfaction should be rated very high in the priorities of the Australian tourism industry.

Time-varying parameters in panel models

by Felix Ritchie

Fixed-effects in static models Differences or deviations?

by Felix Ritchie

Observation Histories: A Compression Technique for Recording Discrete States

by Felix Ritchie

Collinearity and Identification in Varying-Coefficient Panel Estimators

by Felix Ritchie

RR 2011/33EarthRef. org: The Website for Earth Science Reference and Data Models

by Victoria Lynn Packard

FDI Potential and Shortfalls in South Mediterranean Countries: Determinants and Diversion Effects

by Francesco Pastore

Co-authored with Anna Maria Ferragina,
in A. M. Ferragina (ed.), Bridging the Gap: The Role of Trade and FDI in the Mediterranean, Rubettino, Naples, pp. 509-536.

This paper examines FDI flows (1994-2004) from the EU to two neighbouring regions: Central and Eastern Europe (CEE)... more This paper examines FDI flows (1994-2004) from the EU to two neighbouring regions: Central and Eastern Europe (CEE) and South Mediterranean area (MED). The analysis provides circumstantial evidence that the intensification of FDI in CEE, following integration within the EU, has had no discernible dampening effect on FDI flows directed to MED countries. . First, a random effect gravity regression of the determinants of bilateral FDI flows to a large sample of 84 developed and developing partners shows that MED countries are not different from the rest of the sample, when environmental, institutional and policy variables are included in the analysis,. Moreover, the actual capital inflow to MED economies is not much far from the flow predicted based on a gravity equation enlarged to include microeconomic factors. This suggests that the low inflow of FDI to the region might correspond to equilibrium condition considering that economic agents have to face many distortions in MED countries. The common trend followed by coefficients obtained interacting yearly with regional dummies representing the two areas considered confirms this.

Testing the FTPL across government tiers

by Peter Claeys

International R&D spillovers, absorptive capacity and relative backwardness: a panel smooth transition regression model

by Giuseppe Vittucci Marzetti

Co-authored with Andrea Fracasso

We investigate how the country’s absorptive capacity and relative backwardness affect the impact of international... more We investigate how the country’s absorptive capacity and relative backwardness affect the impact of international R&D spillovers on domestic Total Factor Productivity (TFP). To account for nonlinearities, we adopt a Panel Smooth Transition Regression (PSTR) approach, where the country’s elasticity of TFP to foreign R&D stock is allowed to change smoothly across various identified extreme values, and this change is related to observable transition variables: human capital (capturing the country’s absorptive capacity) and relative backwardness. The results suggest that absorptive capacity is positively associated with international R&D spillovers. In addition, and in contrast with previous results, relative backwardness has a negative and significant impact on them.