A solution to the problem of too many instruments in dynamic panel data GMM

The well-known problem of too many instruments in dynamic panel data GMM is dealt with in detail in Roodman (2009, Oxford Bull. Econ. Statist.). The present paper goes one step further by providing a solution to this problem: factorisation of the standard instrument set is shown to be a valid transformation for ensuring consistency of GMM. Monte Carlo simulations show that this new estimation technique outperforms other possible transformations by having a lower bias and RMSE as well as greater robustness of overidentifying restrictions. The researcher's choice of a particular transformation can be replaced by a data-driven statistical decision

Estimation of linear dynamic panel data models with time-invariant regressors

We propose a two-stage estimation procedure to identify the effects of time-invariant regressors in a dynamic version of the Hausman-Taylor model. We first estimate the coefficients of the time-varying regressors and subsequently regress the first-stage residuals on the time-invariant regressors providing analytical standard error adjustments for the second-stage coefficients. The two-stage approach is more robust against misspecification than GMM estimators that obtain all parameter estimates simultaneously. In addition, it allows exploiting advantages of estimators relying on transformations to eliminate the unit-specific heterogeneity. We analytically demonstrate under which conditions the one-stage and two-stage GMM estimators are equivalent. Monte Carlo results highlight the advantages of the two-stage approach infinite samples. Finally, the approach is illustrated with the estimation of a dynamic gravity equation for U.S. outward foreign direct investment

PVAR model with collapsed instruments in the real exchange rates misalignment\u27s analysis

The causes and the consequences of the real exchange rates misalignment\u27s of European Union (EU) members were examined in this paper by implementing stationary panel vector autoregression (PVAR) model with fixed effects. PVAR methodology was recognized as the most appropriate in line with data structure and the objectives of the research. For estimation purpose, the generalized method of moments (GMM) in first differences, with a reduced number of instruments, was applied. Primarily objective was to find whether a collapsed matrix of instruments helps in reducing the dynamic panel bias within the two--step estimation of PVAR model when employing the first difference GMM estimator. Even though, the benefits of collapsed instrument matrix have been documented in rare simulation studies, this paper empirically demonstrates it\u27s utility considering balanced panel data. In that context, recommendations to potential users are given and supported by open source codes in the RStudio environment. Besides, auxiliary findings contribute to a better understanding of influential channels through which EU policy makers should reduce a real exchange rates misalignment\u27s

Whether Urbanization Has Intensified the Spread of Infectious Diseases—Renewed Question by the COVID-19 Pandemic

The outbreak of the COVID-19 epidemic has triggered adiscussion of the relationship between urbanization and the spread of infectious diseases. Namely, whether urbanization will exacerbate the spread of infectious diseases. Based on 31 provincial data from 2002 to 2018 in China, the impact of urbanization on the spread of infectious diseases from the dimensions of “population” and “land” is analyzed in this paper by using the GMM (generalized method of moments) model. The empirical study shows that the population increase brought by urbanization does not aggravate the spread of infectious diseases. On the contrary, urban education, employment and entrepreneurship, housing, medical and health care, and other basic public services brought by population urbanization can help reduce the risk of the spread of infectious diseases. The increasing density of buildings caused by land urbanization increases the risk of the spread of infectious diseases. Moreover, the impact of urbanization on the spread of infectious diseases has regional heterogeneity. Therefore, the prevention and control of disease play a crucial role.</jats:p

Is there a nexus between China outward foreign direct investment and welfare in Côte dʼIvoire? Empirical evidence from the Toda–Yamamoto procedure

Foreign direct investment (FDI) plays an important role in the socio‐economic advancement of developing countries. In the last decade, FDI inflows from China into Côte dʼIvoire have grown rapidly. Using quarterly time series data from 2003Q1 to 2017Q4, this study probes if China FDI has any significant welfare impact on the citizens of Côte dʼIvoire vis‐à‐vis if a causal relationship exists. The policy outcome is to stimulate further discourse that will reduce poverty and enhance the living standard of the population. The study uses vector autoregressive (VAR) and the Toda and Yamamoto (1995) modification of the non‐Granger causality test to determine if a causal relationship exists and the direction of causality. The empirical analysis provides evidence of a unidirectional causality from China FDI to social welfare (proxied by the human development index [HDI]) but no indication of causality between China FDI to economic welfare (proxied by real gross domestic product per capita [GDPPC]). This study, which is borne out of empirical curiosity, fills a lacuna in the FDI literature. To the best of our knowledge, this paper is a novel contribution that examines the FDI‐welfare nexus between China and a developing economy like Côte dʼIvoire. Thus, policies that will further stimulate FDI inflows from China must be carefully crafted to attract funding to the most productive sectors of the economy in order to improve both social and economic welfare. By extension, the policies may be adapted by developing economies with similar characteristics to Côte dʼIvoire

Making speech technology accessible for pathological speakers

Speech technology has become widespread in the past decades: voice assistants, voice biometrics, automated call centres, autotune, and vocaloid idols are part of our everyday lives. These technologies are beneficial and convenient for the general population, but for certain parts of the population, e.g., atypical and pathological speakers, these technologies do not work well. It is especially problematic that pathological speakers are less able to use these technologies as they are often physically disabled, meaning they would have a strong need for voice assistants. Apart from voice assistants, there are several other kinds of speech technologies where the main user would be a pathological speaker. However, these speech technologies currently do not work well for these pathological speakers. In other words, speech technology lacks accessibility to pathological speakers. This thesis presents a series of studies on making speech technology accessible to pathological speakers

Managerial motives in the market for corporate control.

The study examines the impact of corporate takeover activities upon managerial and non-managerial remuneration in the acquiring companies. A regression model is empirically tested on a large panel data from LSE FT-All Share Index list for the period 1980 through 1992. The data is collected through DATASTREAM (361 companies) and also supplemented by a survey conducted by the researcher on Executive Share Options in a sample of organisations size 79 companies. The remuneration measures are regressed separately onto a common set of exogenous variables which measure corporate acquisition activities, size, performance and governance. The model thus is also employed to provide an explanation of the impact of corporate size, performance and governance upon managerial and non-managerial remuneration. The relationship is examined using Arellano and Bond's Generalised Method of Moments estimators after accounting for some of the statistical problems encountered when modelling the data. The findings of this study reveal that corporate size and acquisition activities are significantly related to managerial remuneration. The results also suggest that non-managerial remuneration is not significantly related to corporate acquisition but instead to corporate size, performance and governance

Modelling Agricultural and Rural Development Policies. Proceedings of the 107th EAAE Seminar. Selected Papers

The proceedings of the 107th EAAE seminar �Modelling Agricultural and Rural Development Policies� (29 January � 1 February, 2008 in Seville) include selected scientific papers on modelling approaches and results of the impact assessments of agricultural and rural development policies. The papers range from almost purely theoretical to purely empirical, some present methodological innovation, others focus on new applications.JRC.J.5 - Agriculture and Life Sciences in the Econom