Capital adjustment cost and inconsistency in income-based dynamic panel models with fixed effects
(2019)
Journal Article
Basu, P., Bhattarai, K., & Getachew, Y. (2019). Capital adjustment cost and inconsistency in income-based dynamic panel models with fixed effects. German Economic Review, 20(4), e1002-e1018. https://doi.org/10.1111/geer.12202
After the seminal work of Nickell (1981), a vast literature demonstrates the inconsistency of ‘conditional convergence’ estimator in income-based dynamic panel models with fixed effects when the time horizon (T) is short but the sample of countries (... Read More about Capital adjustment cost and inconsistency in income-based dynamic panel models with fixed effects.