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- W149185281 abstract "This paper compares dynamic panel regression with random effects under different assumptions about the nature of the initial conditions, and suggests that a pragmatic approach is to be preferred. The proposed approach has a flexible reduced form for the initial response which effectively imposes a random effect correlated with the subsequent model equation to deal with the initial conditions and to handle the problem of negative estimates of variance components. These concepts are illustrated by testing a variety of different hypothetical models in economic contexts. We use information criteria to select the best approximating model. We find that the full maximum likelihood improves the consistency results if the relationships between random effects, initial conditions and explanatory variables are correctly specified." @default.
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- W149185281 date "2006-01-01" @default.
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- W149185281 title "Chapter 4 Modelling the Initial Conditions in Dynamic Regression Models of Panel Data with Random Effects" @default.
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- W149185281 doi "https://doi.org/10.1016/s0573-8555(06)74004-4" @default.
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