Do the components of government expenditure affect the long-run dynamics of private investments? A heterogeneous panel analysis with a multifactor error structure

References

• Afonso, A., and J. T. Jalles. 2014. “Fiscal Composition and long-term Growth.” Applied Economics 46 (3): 349–358. doi:10.1080/00036846.2013.848030.
   Web of Science ®Google Scholar
• Afonso, A., and M. St Aubyn. 2019. “Economic Growth, Public, and Private Investment Returns in 17 OECD Economies.” Portuguese Economic Journal 18 (1): 47–65. doi:10.1007/s10258-018-0143-7.
   Web of Science ®Google Scholar
• Ahmed, H., and S. M. Miller. 2000. “Crowding‐out and Crowding‐in Effects of the Components of Government Expenditure.” Contemporary Economic Policy 18 (1): 124–133. doi:10.1111/j.1465-7287.2000.tb00011.x.
   Web of Science ®Google Scholar
• Alesina, A., S. Ardagna, R. Perotti, and F. Schiantarelli. 2002. “Fiscal Policy, Profits, and Investment.” American Economic Review 92 (3): 571–589. doi:10.1257/00028280260136255.
   Web of Science ®Google Scholar
• Ashraf, A., and D. Herzer. 2014. “The Effects of Greenfield Investment and M&As on Domestic Investment in Developing Countries.” Applied Economics Letters 21 (14): 997–1000. doi:10.1080/13504851.2014.904482.
   Web of Science ®Google Scholar
• Atesoglu, H. S., and J. Emerson. 2008. “Fiscal Policy, Profits and Investment: Some Additional Evidence.” Applied Economics Letters 15 (13): 1047–1051. doi:10.1080/13504850600993515.
   Web of Science ®Google Scholar
• Barro, R. J. 1991. “Economic Growth in a Cross Section of Countries.” The Quarterly Journal of Economics 106 (2): 407–443. doi:10.2307/2937943.
   Web of Science ®Google Scholar
• Blanchard, O., and R. Perotti. 2002. “An Empirical Characterization of the Dynamic Effects of Changes in Government Spending and Taxes on Output.” The Quarterly Journal of Economics 117 (4): 1329–1368. doi:10.1162/003355302320935043.
   Web of Science ®Google Scholar
• Chudik, A., M. H. Pesaran, and E. Tosetti. 2011. “Weak and Strong Cross‐section Dependence and Estimation of Large Panels.” The Econometrics Journal 14 (1): C45–C90. doi:10.1111/j.1368-423X.2010.00330.x.
   Web of Science ®Google Scholar
• Chudik, A., and M. H. Pesaran. 2015. “Common Correlated Effects Estimation of Heterogeneous Dynamic Panel Data Models with Weakly Exogenous Regressors.” Journal of Econometrics 188 (2): 393–420. doi:10.1016/j.jeconom.2015.03.007.
   Web of Science ®Google Scholar
• Ditzen, J. 2018. “Estimating Dynamic common-correlated Effects in Stata.” The Stata Journal 18 (3): 585–617. doi:10.1177/1536867X1801800306.
   Web of Science ®Google Scholar
• Ditzen, J. 2021. “Estimating long-run Effects and the Exponent of cross-sectional Dependence: An Update to xtdcce2.” The Stata Journal 21 (3): 687–707. doi:10.1177/1536867X211045560.
   Web of Science ®Google Scholar
• Eberhardt, M. 2012. “Estimating Panel time-series Models with Heterogeneous Slopes.” The Stata Journal 12 (1): 61–71. doi:10.1177/1536867X1201200105.
   Web of Science ®Google Scholar
• Everaert, G., and T. De Groote. 2016. “Common Correlated Effects Estimation of Dynamic Panels with cross-sectional Dependence.” Econometric Reviews 35 (3): 428–463. doi:10.1080/07474938.2014.966635.
   Web of Science ®Google Scholar
• Feenstra, R. C., R. Inklaar, and M. P. Timmer. 2015. “The Next Generation of the Penn World Table.” American Economic Review 105 (10): 3150–3182. doi:10.1257/aer.20130954.
   Web of Science ®Google Scholar
• Juodis, A., H. Karabiyik, and J. Westerlund. 2021. “On the Robustness of the Pooled CCE Estimator.” Journal of Econometrics 220 (2): 325–348. doi:10.1016/j.jeconom.2020.06.002.
   Web of Science ®Google Scholar
• Pesaran, M. H. 2006. “Estimation and Inference in Large Heterogeneous Panels with a Multifactor Error Structure.” Econometrica 74 (4): 967–1012. doi:10.1111/j.1468-0262.2006.00692.x.
   Web of Science ®Google Scholar
• Pesaran, M. H. 2007. “A Simple Panel Unit Root Test in the Presence of Cross‐section Dependence.” Journal of Applied Econometrics 22 (2): 265–312. doi:10.1002/jae.951.
   Web of Science ®Google Scholar
• Pesaran, M. H. 2021. “General Diagnostic Tests for cross-sectional Dependence in Panels.” Empirical Economics 60 (1): 13–50. doi:10.1007/s00181-020-01875-7.
   Web of Science ®Google Scholar
• Westerlund, J. 2007. “Testing for Error Correction in Panel Data.” Oxford Bulletin of Economics and Statistics 69 (6): 709–748. doi:10.1111/j.1468-0084.2007.00477.x.
   Web of Science ®Google Scholar