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Dynamic panels with threshold effect and endogeneity - ScienceDirect
Source: sciencedirect.com
Article summary:
1. The article discusses the implications of nonlinear asymmetric dynamics in dynamic panel data.
2. It proposes a GMM approach based on the first-difference transformation to allow for endogenous regressors and threshold variables.
3. The article develops an asymptotic theory that allows for standard inference on the threshold and other parameters, regardless of whether the regression function is continuous or not.
Article analysis:
The article provides a comprehensive overview of the implications of nonlinear asymmetric dynamics in dynamic panel data, and presents a GMM approach based on the first-difference transformation to allow for endogenous regressors and threshold variables. The article also develops an asymptotic theory that allows for standard inference on the threshold and other parameters, regardless of whether the regression function is continuous or not.
The article appears to be well researched and reliable, with references to relevant literature throughout. However, it should be noted that there are some potential biases in the article which could affect its trustworthiness and reliability. For example, there is a lack of discussion about possible risks associated with using this approach, such as potential errors due to incorrect assumptions about exogeneity or endogeneity of regressors or thresholds. Additionally, there is no mention of any counterarguments or alternative approaches which could be used instead of this one. Furthermore, while the article does provide references to relevant literature throughout, it does not explore these sources in detail or present both sides equally when discussing them. This could lead to partiality in reporting and unsupported claims being made without sufficient evidence provided for them.
In conclusion, while this article appears to be well researched and reliable overall, there are some potential biases which should be taken into consideration when assessing its trustworthiness and reliability.