Title: Dynamic Labour Demand Model for Heterogeneous Panels
Abstract: In the “European Panels Project”1 Dr Andrew Hildreth2 has assisted Eurostat. In particular, he has presented the panel estimation techniques proposed by Arellano and Bond (1991) and the associated Gauss program: the “Dynamic Panel Data” program. These two authors have adapted to panel data a method proposed by Hansen (1982). They use a Generalised Method of Moments (GMM) in order to estimate consistently the parameters of a dynamic linear equation. This method relies on a number of orthogonality conditions between some instrumental variables and the error term. It generalises the estimation methods by Instrumental Variables (IV) proposed by Balestra and Nerlove (1966) and Anderson and Hsiao (1981, 1982). This method has been tested by estimating dynamic models using panel data for eleven countries. Some of these results focusing on the estimate of employment equations have been taken into account in this paper to illustrate the problem of estimating a dynamic linear model on heterogeneous panels. This paper is organised in three sections.
Publication Year: 1999
Publication Date: 1999-01-01
Language: en
Type: book-chapter
Indexed In: ['crossref']
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