Large-N and Large-T Properties of Panel Data Estimators and the Hausman Test



Notice that since ∣∣Z⅞τ (E⅛^χ3jitEx3jit) ∣∣4 ≤ τ (r)4 G (¾)4 by Assumption
6(iv), we have sup,
∣∣Z⅞feT (A¾y.⅛fe,i - Ex3kti) ∣∣4 ≤ (ʃθɪ τ (r)4 dr) supiG(¾)4
for
к = 1,2, and 3. Therefore, by Lemma 10, we have

E KD3kτ (Ej^ix3k,i — Ex3k1i} K


(uniformly in i)



< ∞, for к = 1, 2, 3,


where τ3ι (r) = 0. So,

supE ∖∖D (Eτz.x3,i - Ex3ji) ∣∣4 < ∞.               (67)

Similarly, it follows that

sup sup E ∣∣Z⅛τ (E∏sx3 - E⅛)∣∣4 < ∞∙            (68)

N,T l<i<N


In addition, notice that

sup sup ∣∣Z⅛τ (Ex31i - Ex3)Il
N,Tl<i<N

sup sup


N,T l<i<N


(D33τ {Ex33tι — Ex33)
D3∙2τ (Ex321i — Ex32) — H32μg32i
D33τ {Ex33yι — Ex33) — H33μg33.


(69)


+ sup sup

N 3<i<N


0

-^32 At332

-^33 At333


By Assumption 6(v), as T → ∞,


sup sup


N 3<i<N


(D33τ (Ex33g. — Ex33)
D3,2τ
(¾2,i — Ex32) — H3g32 .

D33τ (Ex33ji — Ex33) — H33μg33 .


sup sup


D33τ {Ex33,i — Ex33j)            ''

D32τ (Ex32,i — Ex32j) — H32g32 i At3323J

D33τ (Ex33ιi — Ex33j) — H33 μg33 i — μ933 j) J


sup
i,j


f           D33τ (Ex33ji — Ex33j)

D32τ (Ex32,i — Ex32j) — H32 μg32 i At332i3

D33τ (Ex33,i — Ex33j) — H33g33 i — μ933 j


46




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