On the Heterogeneity Bias of Pooled Estimators in Stationary VAR Specifications /

This paper studies asymptotically the bias of the fixed effect (FE) estimator induced by cross-section heterogeneity in the slope parameters of stationary vector autoregressions (VARs). The paper also compares the FE, the mean group estimator (MG), and a simple instrumental variable alternative (IV)...

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Bibliografische gegevens
Hoofdauteur: Rebucci, Alessandro
Formaat: Tijdschrift
Taal:English
Gepubliceerd in: Washington, D.C. : International Monetary Fund, 2003.
Reeks:IMF Working Papers; Working Paper ; No. 2003/073
Onderwerpen:
Online toegang:Full text available on IMF
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100 1 |a Rebucci, Alessandro. 
245 1 0 |a On the Heterogeneity Bias of Pooled Estimators in Stationary VAR Specifications /  |c Alessandro Rebucci. 
264 1 |a Washington, D.C. :  |b International Monetary Fund,  |c 2003. 
300 |a 1 online resource (45 pages) 
490 1 |a IMF Working Papers 
500 |a <strong>Off-Campus Access:</strong> No User ID or Password Required 
500 |a <strong>On-Campus Access:</strong> No User ID or Password Required 
506 |a Electronic access restricted to authorized BRAC University faculty, staff and students 
520 3 |a This paper studies asymptotically the bias of the fixed effect (FE) estimator induced by cross-section heterogeneity in the slope parameters of stationary vector autoregressions (VARs). The paper also compares the FE, the mean group estimator (MG), and a simple instrumental variable alternative (IV) in Monte Carlo simulations. The main results are: (i) asymptotically, the heterogeneity bias of the FE may be more or less severe in VAR specifications than in standard dynamic panel data specifications; (ii) in Monte Carlo simulations, slope heterogeneity must be relatively high to be a source of concern for pooled estimators; (iii) when this happens, the panel must be longer than a typical macro dataset for the MG to be a viable solution. 
538 |a Mode of access: Internet 
650 7 |a Estimation  |2 imf 
650 7 |a Multiple Or Simultaneous Equation Models  |2 imf 
650 7 |a WP  |2 imf 
830 0 |a IMF Working Papers; Working Paper ;  |v No. 2003/073 
856 4 0 |z Full text available on IMF  |u http://elibrary.imf.org/view/journals/001/2003/073/001.2003.issue-073-en.xml  |z IMF e-Library