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- W3123507369 abstract "This Paper highlights a problem in using the first-differenced GMM panel data estimator to estimate cross-country growth regressions. When the time series are persistent, the first-differenced GMM estimator can be poorly behaved, since lagged levels of the series provide only weak instruments for subsequent first-differences. Revisiting the work of Caselli, Esquivel and Lefort (1996), we show that this problem may be serious in practice. We suggest using a more efficient GMM estimator that exploits stationarity restrictions and this approach is shown to give more reasonable results than first-differenced GMM in our estimation of an empirical growth model." @default.
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- W3123507369 date "2001-09-12" @default.
- W3123507369 modified "2023-10-17" @default.
- W3123507369 title "GMM Estimation of Empirical Growth Models" @default.
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