Search results for "Endogeneity"
showing 10 items of 52 documents
On the Link Between Volatility and Growth
2011
A model of growth with endogenous innovation and distortionary taxes is presented. Since innovation is the only source of volatility, any variable that influences innovation directly affects volatility and growth. This joint endogeneity is illustrated by working out the effects through which economies with different tax levels differ in their volatility and growth process. We obtain analytical measures of macro volatility based on cyclical output and on output growth rates for plausible parametric restrictions. This analysis implies that controls for taxes should be included in the standard growth-volatility regressions. Our estimates show that the conventional Ramey-Ramey coefficient is af…
Rich regions, poor regions and bank branch deregulation in Spain
2016
Rich regions, poor regions and bank branch deregulation in Spain. Regional Studies. The links between financial deregulation and economic performance are evaluated in a European context. Specifically, the study analyses the relaxation of bank branching restrictions in Spain, which triggered a remarkable interregional expansion of savings banks that coincided with an unprecedented period of sustained economic expansion. Although related questions have been widely investigated for the United States, experiences in Europe have received far less research attention. An additional contribution of the paper lies in its use of quantile regression, which enables the investigation of the possibility …
Returns to Schooling in Spain: How Reliable are Instrumental Variable Estimates?
2002
This paper studies the ordinary least–squares (OLS) and instrumental variable (IV) estimates of the returns to schooling for male workers in Spain. OLS estimates are often biased due to the endogeneity of schooling, measurement errors or omitted variables. Proper IV estimates correct this bias. The reliability of family background, natural experiments (based on changes in the education system and season of birth) and the availability of a college in the province is checked using Spanish data. The results suggest that background and college availability are valid instruments and that the IV estimates of the returns to schooling are higher than OLS estimates. These results are in line with th…
Returns to Schooling in Spain. How Reliable Are IV Estimates?
2001
This paper studies the Ordinary Least-Squared (OLS) and Instrumental Variables (IV) estimates of the returns to schooling for male workers in Spain. OLS estimates are often biased due to the endogeneity of schooling, measurement errors or omitted variables. Proper IV estimates correct this bias. The reliability of family background, natural experiments (based on changes in the education system and season of birth) and the availability of a college in the province is checked using Spanish data. The results suggest that background and college availability are valid instruments and that the IV estimates of the returns to schooling are higher than OLS estimates. These results are in line with t…
Uncontrolled diabetes and health care utilisation:A bivariate latent Markov model approach
2018
Although uncontrolled diabetes (UD) or poor glycaemic control is a widespread condition with potentially life-threatening consequences, there is sparse evidence of its effects on health care utilisation. We jointly model the propensities to consume health care and UD by employing an innovative bivariate latent Markov model that allows for dynamic unobserved heterogeneity, movements between latent states and the endogeneity of UD. We estimate the effects of UD on primary and secondary health care consumption using a panel dataset of rich administrative records from Spain and measure UD using a biomarker. We find that, conditional on time-varying unobservables, UD does not have a statisticall…
Is the sustainability profile of FinTech companies a key driver of their value?
2022
[EN] The digitisation process is affecting all markets and raising consumer awareness about companies' sustainable behaviour. This work studies the effect of the sustainability profile of FinTech companies on the firm (market value and book value) as the factors that add value to investors and motivate their evolution in markets are still unknown. Using the KBW and Nasdaq FinTech Indices, and the NASDAQ Insurance Index (IXIS), we composed a panel of 95 companies over a 10-year period (2010-2019) with economic-financial variables and data about green certificates and sustainability indices. The applied methodology is based on dynamic (GMM-SYS) and static (PCSE) panel data models. Our results…
Female audit team leaders and audit effort
2022
Abstract Auditing is a collective process conducted by a professional accounting team with a wide range of skills and experience. Audit work is labor-intensive, and audit team diversity, particularly gender diversity, is considered to have both auditing and economic effects. However, there is scant empirical research on the way that audit engagements are conducted and the role of audit team leaders (ATLs), specifically female ATLs, in the audit effort, because they and other audit team members mainly develop audit strategies in practice during the planification period. A hand-collected private data set was gathered from Spanish small and medium-sized audit firms from 2001 to 2015. After con…
Tax Competition with Intermunicipal Cooperation
2020
We study local tax competition when municipalities can voluntarily cooperate with neighboring jurisdictions. In France, the strongest form of cooperation among municipalities occurs by forming an “establishment for inter-municipal cooperation” (EIMC). We study how interjurisdictional policy interdependence differs between competing municipalities within the same EIMC and competing municipalities outside of the cooperative unit. We apply the estimation strategy of Kelejian and Piras (2014) to resolve the endogeneity of the decision to cooperate with other municipalities. We find that strategic interactions among peer members of the same EIMC are less intense than strategic interactions with …
Selection Correction in Panel Data Models: An Application to Labour Supply and Wages
2000
In recent years a number of panel estimators have been suggested for sample selection models, where both the selection equation and the equation of interest contain individual effects which are correlated with the explanatory variables. We review and compare some of these estimators, and apply them to estimating the return to actual labour market experience for females, using a panel of twelve years. All these estimators rely on the assumption of strict exogeneity of regressors in the equation of interest, conditional on individual specific effects and the selection mechanism. This assumption is likely to be violated in many applications. Also, life history variables are often measured with…
Advance booking across channels: The effects on dynamic pricing
2021
This research analyzes the effects of advance booking and channel type on hotel rates. While this relationship has been addressed in the literature, most studies take a partial approach by focusing only on one distribution channel or one destination. This study fills this gap by analyzing the price dynamics for four channels and multiple destinations. The data set consists of 39,363 bookings for 1085 hotels over 27 consecutive months. We used two-stage least squares to solve potential endogeneity issues, and the results proved that distribution channel, hotel type and hotel size have an influence on the effect of advance booking on hotel rates. Critical managerial implications are discussed…