The Global Dimension to Fiscal Sustainability



Table 2: Nonstationary Panel Estimation with Factors

Model with No Factor_______________________________

Fixed Effects

0.054
______________(6.232)______________

Model with Stationary Factor_________________________

Bai and Kao (2006)

CupFM_________

0.059
_____________(12.951)_____________

Model with Nonstationary Factor______________________

Bai et al. (2007)
CupBC__________

0.018

______________(7.287)______________

Bai et al. (2007)

CupFM_________

0.039
_____________(12.341)_____________

Notes: Panel data set is 1978 to 2005 (N=15, T=28). Estimation results
are based on equation (15) sit = αi + ρdit + λiFt, where a factor (Ft) is
included. t-statistics in parentheses and in bold with a star (*) if
significant at the 5% level. An information criterion from Bai and Ng
(2002) suggests a factor is appropriate. Bai and Kao (2006)
continuously updated fully modified (CupFM) estimator has a
stationary factor. Bai et al. (2007) continuously bias corrected CupBC
and CupFM has a nonstationary factor.

26



More intriguing information

1. Global Excess Liquidity and House Prices - A VAR Analysis for OECD Countries
2. Research Design, as Independent of Methods
3. The name is absent
4. Regional science policy and the growth of knowledge megacentres in bioscience clusters
5. On the origin of the cumulative semantic inhibition effect
6. Altruism with Social Roots: An Emerging Literature
7. Nurses' retention and hospital characteristics in New South Wales, CHERE Discussion Paper No 52
8. The name is absent
9. The name is absent
10. Sectoral specialisation in the EU a macroeconomic perspective