Efficient GMM Estimation of a Cliff and Ord Panel Data Model with Random Effects

Document Type

Article

Publication Date

2013

College/Unit

Regional Research Institute

Abstract

The present paper suggests an estimation procedure for a Cliff and Ord type spatial panel data model with random effects. Building on existing literature, the paper suggests an estimation procedure that (i) considers all the moment conditions in Kapoor et al. (2007) and (ii) allows for the presence of explanatory variables that do not vary over time. Our Monte Carlo results demonstrate that the estimation procedure proposed in this paper is very effective.

Source Citation

Gianfranco Piras (2013) Efficient GMM Estimation of a Cliff and Ord Panel Data Model with Random Effects, Spatial Economic Analysis, 8:3, 370-388, DOI: 10.1080/17421772.2013.804628

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