Bruno, Randolph ;
Stampini, Marco
(2007)
Joining Panel Data with Cross-Sections for Efficiency Gains: an Application to a Consumption Equation for Nicaragua.
Bologna:
Dipartimento di Scienze economiche DSE,
p. 25.
DOI
10.6092/unibo/amsacta/4631.
In: Quaderni - Working Paper DSE
(619).
ISSN 2282-6483.
Full text available as:
Abstract
This paper explores how cross-sectional data can be exploited jointly with
longitudinal data, in order to increase estimation effciency while properly tackling the potential bias due to unobserved individual characteristics. We propose
an innovative procedure and we show its implementation by analysing the determinants of consumption in Nicaragua, based on data from three Living Standard
Measurement Study surveys from 1993, 1998 and 2001. The last two rounds constitute an unbalanced longitudinal data set, while the first is a cross-section of
di®erent households. Under the assumption that the relationship between observed and unobserved characteristics is homogenous across time, information
from longitudinal is are used to clean the bias in the unpaired sample. In a second step, corrected unpaired observations are used jointly with panel data. This
reduces the standard errors of the estimation coe±cients and might increase their
significance as well, otherwise compromised by the limited variation provided by
the short longitudinal data.
Abstract
This paper explores how cross-sectional data can be exploited jointly with
longitudinal data, in order to increase estimation effciency while properly tackling the potential bias due to unobserved individual characteristics. We propose
an innovative procedure and we show its implementation by analysing the determinants of consumption in Nicaragua, based on data from three Living Standard
Measurement Study surveys from 1993, 1998 and 2001. The last two rounds constitute an unbalanced longitudinal data set, while the first is a cross-section of
di®erent households. Under the assumption that the relationship between observed and unobserved characteristics is homogenous across time, information
from longitudinal is are used to clean the bias in the unpaired sample. In a second step, corrected unpaired observations are used jointly with panel data. This
reduces the standard errors of the estimation coe±cients and might increase their
significance as well, otherwise compromised by the limited variation provided by
the short longitudinal data.
Document type
Monograph
(Working Paper)
Creators
Keywords
Panel Data, Estimation E±ciency, Pseudo-Panel, Consumption
Model, Nicaragua.
Subjects
ISSN
2282-6483
DOI
Deposit date
16 Feb 2016 14:23
Last modified
16 Feb 2016 14:23
URI
Other metadata
Document type
Monograph
(Working Paper)
Creators
Keywords
Panel Data, Estimation E±ciency, Pseudo-Panel, Consumption
Model, Nicaragua.
Subjects
ISSN
2282-6483
DOI
Deposit date
16 Feb 2016 14:23
Last modified
16 Feb 2016 14:23
URI
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