Pooling Time Series and Cross-Section Data

Notes

Topics Discussed in Class

• • Error Components Models

  • Correlated Regressors

  • Specification Tests

Readings Discussed in Class

• • Breusch, T. and A. Pagan (1979). "The Lagrange Multiplier Test and Its Applications to Model Specification in Econometrics." Review of Economic Studies, 1263-1277.

  • Hausman, J. (1978). "Specification Tests in Econometrics." Econometrica. 1251-1271.

  • Hsiao, Chapters 1-3.

Homework

Other readings

• • Browning, Martin, A. Deaton, and M. Irish (1985). "A Profitable Approach to Labor Supply and Commodity Demands Over the Life Cycle." Econometrica. 503-544.

  • Chamberlain, G. (1978). "Omitted Variables Bias in Panel Data: Estimating the Returns to Schooling." Annales de l'INSEE. 49-82.