A Note on the Theme of Too Many Instruments<sup>*</sup>

Roodman, David

doi:10.1111/j.1468-0084.2008.00542.x

Cited by 4,052 publications

(2,288 citation statements)

References 37 publications

Supporting

Mentioning

2,198

Contrasting

Unclassified

Order By: Relevance

“…For example, Windmeijer (2005) observes that when instrument counts are lowered mean bias of parameters are lowered as well. In a similar vein, Roodman (2009a) notes that increases in the instrument count can lead to overestimation of parameters. Moreover, León-González and Montolio (2015) find that models which involve nearer lags as instruments have larger posterior probability.…”

Section: Sensitivity Analysis Of the Resultsmentioning

confidence: 99%

Does Trade Openness Matter for Economic Growth in the CEE Countries?

Iyke

2017

Review of Economic Perspectives

View full text Add to dashboard Cite

This paper sets out to answer the question: Is trade openness important for economic growth in the Central and Eastern European (CEE) countries? The policyoriented measures of trade openness used in earlier studies have been argued to be subjective, while the simple outcome-oriented measures only capture one aspect of trade openness, namely: countries' share of trade. Hence, following Squalli and Wilson (2011), the paper constructs a new outcome-oriented measure of trade openness which captures a country's share of trade, and its interaction and interconnectedness with the rest of the world. Using fixed-effects regressions for 17 CEE countries over the period 1994 -2014, the paper finds trade openness to be important for growth within the CEE countries. In particular, the results show that increases in trade openness is associated with increases in real GDP per capita growth within these countries. The results appear significantly the same after we dropped Croatia and Estonia -two historically closed economies.

show abstract

Section: Sensitivity Analysis Of the Resultsmentioning

confidence: 99%

Does Trade Openness Matter for Economic Growth in the CEE Countries?

Iyke

2017

Review of Economic Perspectives

View full text Add to dashboard Cite

show abstract

“…AR(1) is also a test for the presence of first order serial autocorrelation and in this case presence of serial autocorrelation is strongly rejected. The Hansen test for instrument validity is within the required range (0.10 -0.25) as stated by Roodman (2009a and2009b). Also the number of instruments are reasonably less than the number of countries in the panel (Elbahnasawy and Ellis (2016)).…”

Section: Sensitivity Testmentioning

confidence: 88%

“…In this regard a highly significant p-value of the AR(1) and a small p-value of the Hansen test are desirable since they respectively signify the absence of first order serial correlation and validity of instruments. According to Roodman (2009a and2009b) a Hansen p-value above 0.10 but not greater than 0.25 is a good benchmark for validity of instruments. He warned that a p-value close to 0.25 and above should be viewed with great concern since it shows the weakening of system GMM model due to instrument proliferation.…”

Section: Methodology and Datamentioning

confidence: 99%

The Impact of Institutional Quality on Economic Performance: An Empirical Study of Turkey and 28 Countries in the European Union.

Siyakiya

2017

EconWorld

View full text Add to dashboard Cite

Using a panel set of 28 European Union member states and 8 prospective members to the bloc over a period of 1996-2014, this paper examines to what extent institutional quality (governance index) and its sub-indicators (control over corruption, government effectiveness, political stability, regulatory quality, rule of law and voice and accountability) can influence overall economic performance measured by gross value added per capita. The paper expands on existing literature by disaggregating the growth impact of institutions for all countries in the sample, developed and less developing countries. The independent variables included in the model are gross fixed capital formation as a percentage of GDP, net barter terms of trade, government size (expenditure), quality of institution and inflation while gross value added per capita is the dependent variable. Because of the weakness of the fixed effects model, system GMM is used to estimate the coefficients. Generally, the results show a positive and significant relationship between economic performance and the quality of institution. Precisely holding other things constant, a 10 units improvement in the quality of overall institution is predicted to increase gross value added per capita by 1.33 units. Also, the impact of institutional improvements on economic performance is higher and more predominant in developed countries than in less developed. A disintegrated analysis of institutions reveals that government effectiveness and voice and accountability have positive and significant impacts on economic performance of the 36 countries. However, control over corruption and political stability and absence of violence have negative signs. Also, there is no evidence of influence of regulatory quality and rule of law on economic growth.

show abstract

“…When the instruments count is high they may fail to expunge their endogenous components, biasing coefficient estimates toward those from non-instrumenting estimators, as discussed by (Roodman 2009a(Roodman , 2009b. With the limitation of lags we overcome this problem, e.g., we will keep the number of instruments lower than the number of countries.…”

Section: Data Econometric Specification and Summary Statisticsmentioning

confidence: 99%

Determinants of worldwide software piracy losses

Gomes

Cerqueira

Alçada-Almeida

2015

Technological and Economic Development of Economy

View full text Add to dashboard Cite

Abstract. This paper studies the determinants of software piracy losses along five major macroeconomic dimensions: Technological, Educational, Institutional, Access to Information and Labor force. The study was conducted based on a large dataset available from 1995 to 2010 and comprising 81 countries. As for the Technological dimension, more patents by residents increases piracy losses while the effect of R&D is the opposite (decreases piracy losses). In terms of the Educational dimension, the results show that more spending on education increase the piracy losses but, at the same time, more schooling years have the contrary effect. Concerning the Institutional dimension, nations with less corruption have lower piracy levels. Regarding the Access to Information, it seems that access to Internet diminishes the losses while the share of Internet broadband subscriptions has no effect. The results also show that, regarding the Labor dimension, employment in services has a deterrent effect while labor force with higher education and youth unemployment increases piracy losses.

show abstract

A Note on the Theme of Too Many Instruments^*

Cited by 4,052 publications

References 37 publications

Does Trade Openness Matter for Economic Growth in the CEE Countries?

Does Trade Openness Matter for Economic Growth in the CEE Countries?

The Impact of Institutional Quality on Economic Performance: An Empirical Study of Turkey and 28 Countries in the European Union.

Determinants of worldwide software piracy losses

Contact Info

Product

Resources

About

A Note on the Theme of Too Many Instruments*

Cited by 4,052 publications

References 37 publications

Does Trade Openness Matter for Economic Growth in the CEE Countries?

Does Trade Openness Matter for Economic Growth in the CEE Countries?

The Impact of Institutional Quality on Economic Performance: An Empirical Study of Turkey and 28 Countries in the European Union.

Determinants of worldwide software piracy losses

Contact Info

Product

Resources

About

A Note on the Theme of Too Many Instruments^*