GMM Estimation of Empirical Growth Models

By Stephen R. Bond, Anke Hoeffler, Jonathan R.W. Temple. 2001

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Citations in the corpus

How Does Political Instability Affect Economic Growth? (2010, background): “12 For a detailed discussion on the conditions under which GMM is suitable for estimating growth regressions, see Bond et al. (2001).”
Financial Development, Remittances and Economic Growth: Evidence Using a Dynamic Panel Estimation (2016, methodology): “In other words, growth in the current period may depend on the past year’s growth (Alesina et al., 1992; Bond et al., 2001).”
Small sample bias properties of the system GMM estimator in dynamic panel data models (2007, unknown): “Then the one-step GMM estimators for α based on moment condition (9) are α̂ = ( q′ −1Zs(Z ′ sZs) −1Z ′ sq−1 )−1 q′ −1Zs(Z ′ sZs) −1Z ′ sq (11) (6)Although ∆yi2 is also available as an instrument for t = 4, we do not use it because it becomes redundant in the system estimation.”
Development Aid and Economic Growth: A Positive Long-Run Relation (2009, unknown): “(For a complete discussion, see Bond et al., 2001.) we need to find evidence of first-, but not second-order serial correlation in the differenced residuals.”
Has the development of FDI and foreign trade contributed to China’s CO2 emissions? An empirical study with provincial panel data (2015, methodology): “Bond et al. (2001) pointed out that the first-difference GMM method was prone to large downward bias when there were not many time series of observations.”
A balancing act: Managing financial constraints and agency costs to minimize investment inefficiency in the Chinese market (2016, methodology): “Estimating our dynamic models via different approaches enables us to check the validity of our estimates: the true estimated coefficient on the lagged dependent variable should lie between the estimates obtained from the pooled OLS and the fixed effects (Fe) estimators (Bond et al. 2001).”
Impact of institutional quality on environment and energy consumption: evidence from developing world (2020, background): “1 3 dependency of explanatory variables of model, (iv) almost all explanatory variables are treated as endogenous variables (Bond et al. 2001).”
Inequality and growth: the neglected time dimension (2013, methodology): “, Bond et al. 2001). Both alternatives are used in practice. We therefore also rely on both variants when estimating our core specifications. Whenever the two-step estimator is applied, the Windmeijer (2005) correction is used to calculate the standard errors.”
Inward FDI and growth: The role of macroeconomic and institutional environment (2011, methodology): “The convenience of this method in empirical growth models has been emphasized on many occasions (see, for instance, the works of Bond et al, 2001, Kose et al, 2008, and Soto, 2009).”
Sectoral Agglomeration Economies in a Panel of European Regions (2008, background): “Our results thus con…rm prior small-sample …ndings based on highly persistent panel data, indicating that the DIFF-GMM estimator is unreliable in such contexts (see e.g. Bond et al., 2001).”
Financial Integration, Investment, and Economic Growth: Evidence from Two Eras of Financial Globalization (2010, methodology): “The system GMM estimator, introduced by Arellano and Bover (1995) and Blundell and Bond (1997), combines the standard set of equations in first differences with suitably lagged levels as instruments with an additional set of equations in levels with suitable lagged first differences as instruments (”
ICT as a source of economic growth in the information age: Empirical evidence from the 1996-2005 period (2011, background): “Acemoglu, Johnson, 12 A discussion of the reason why the system GMM estimator outperforms the difference GMM estimator can also be found in Arellano and Bover (1995), Blundell and Bond (1998), and Bond, Hoeffler, and Temple (2001).”
Residential electricity demand in Spain: New empirical evidence using aggregate data (2013, background): “Donatos and Mergos (1991); Burney (1995); Silk and Joutz (1997); Filippini (1999); Lariviere and Lafrance (1999); Christian and Michael (2000); García-Cerruti (2000); Miller (2002); Lin (2003); Holtedahl and Joutz (2004), Hondroyiannis (2004); Narayan et al.”