Unit Root and Cointegration Tests for Cross-sectionally Correlated Panels. Estimating Regional Production Functions

There is a plethora of studies of regional production functions using stationary panel data. Only some recent works consider non-stationary panel data. All of them assume the hypothesis of cross-section independence. Here, we claim that the independence assumption is too strong when regional data are used. In this paper, the cross-section independence assumption is released and cross-sectional dependence is assumed. First, unit roots and cointegration properties of the panel dataset are properly investigated by using newly developed tests for cross-sectionally dependent panels. Second, dynamic OLS (DOLS) and recent regression models for cross-sectionally correlated panels are used to estimate the cointegrated relationship between value added, physical and human capital, for Italian regions over the period 1970-1998

National income and capital formation, 1919-1935, a preliminary report.

"The measures of national income constitute a complete revision of the estimates for 1919-28 by W. I. King (National income and its purchasing power) and their continuation through 1935... The measures of commodity flow and capital formation constitute a revision and amplification of preliminary estimates ... released in Gross capital formation, 1919-1933 (Bulletin 52, National bureau of economic research, November 15,1934)." - Foreword.At head of title: Simon Kuznets.Mode of access: Internet