Skip to main content

LUP Student Papers

LUND UNIVERSITY LIBRARIES

Metoder för hantering av tvärsnittskorrelation

Lindén, Tilda LU and Wojcieszek, Eryka (2024) NEKH02 20241
Department of Economics
Abstract
This study examines how three different methods for addressing cross-sectional dependency can affect the regression results. By ignoring the problem, using a two-way fixed effects model and using Common Correlated Effects (CCE), three regressions are run to answer the research question. In order to conduct this analysis, a growth model is specified and consists of the following explanatory variables: labour, capital, human capital, trade openness, real exchange rate and economic freedom. The panel regression consists of 53 countries spanning the time period from 1981 to 2019. Contrary to previous research, the results show no drastic changes between the three methods. There are, however, some interesting findings regarding some of the... (More)
This study examines how three different methods for addressing cross-sectional dependency can affect the regression results. By ignoring the problem, using a two-way fixed effects model and using Common Correlated Effects (CCE), three regressions are run to answer the research question. In order to conduct this analysis, a growth model is specified and consists of the following explanatory variables: labour, capital, human capital, trade openness, real exchange rate and economic freedom. The panel regression consists of 53 countries spanning the time period from 1981 to 2019. Contrary to previous research, the results show no drastic changes between the three methods. There are, however, some interesting findings regarding some of the variables, but further research is needed to clarify these results. (Less)
Please use this url to cite or link to this publication:
author
Lindén, Tilda LU and Wojcieszek, Eryka
supervisor
organization
course
NEKH02 20241
year
type
M2 - Bachelor Degree
subject
keywords
Cross-sectional dependence, Economic growth, CCE, Pesaran’s CD test Tvärsnittskorrelation, Ekonomisk tillväxt, Pesarans CD-test
language
Swedish
id
9163423
date added to LUP
2024-09-24 09:03:11
date last changed
2024-09-24 09:03:11
@misc{9163423,
  abstract     = {{This study examines how three different methods for addressing cross-sectional dependency can affect the regression results. By ignoring the problem, using a two-way fixed effects model and using Common Correlated Effects (CCE), three regressions are run to answer the research question. In order to conduct this analysis, a growth model is specified and consists of the following explanatory variables: labour, capital, human capital, trade openness, real exchange rate and economic freedom. The panel regression consists of 53 countries spanning the time period from 1981 to 2019. Contrary to previous research, the results show no drastic changes between the three methods. There are, however, some interesting findings regarding some of the variables, but further research is needed to clarify these results.}},
  author       = {{Lindén, Tilda and Wojcieszek, Eryka}},
  language     = {{swe}},
  note         = {{Student Paper}},
  title        = {{Metoder för hantering av tvärsnittskorrelation}},
  year         = {{2024}},
}