Factors affecting economic output in developed countries: A copula approach to sample selection with panel data

This work aims at determining the factors affecting economic output in developed countries. However, the definition of development depends on the criteria by which different principles provide different criteria of level of development. Therefore, there exists uncertainty about choice of sample or r...

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Main Authors: Warattaya Chinnakum, Songsak Sriboonchitta, Pathairat Pastpipatkul
Format: Journal
Published: 2018
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http://cmuir.cmu.ac.th/jspui/handle/6653943832/52441
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Institution: Chiang Mai University
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spelling th-cmuir.6653943832-524412018-09-04T09:31:31Z Factors affecting economic output in developed countries: A copula approach to sample selection with panel data Warattaya Chinnakum Songsak Sriboonchitta Pathairat Pastpipatkul Computer Science Mathematics This work aims at determining the factors affecting economic output in developed countries. However, the definition of development depends on the criteria by which different principles provide different criteria of level of development. Therefore, there exists uncertainty about choice of sample or real development country and if the selected samples are not representative of the underlying population of real developed countries then the ordinary least squares coefficients may be biased. This paper examines the determinants of economic output in the panel data of 22 developed countries from 1996 to 2008 utilizing econometric techniques that take into account the selective nature of the samples. In general, there are two approaches to estimate the sample selection model, namely the maximum likelihood method and the method proposed by Heckman (1979) [21]. Moreover, these two approaches require that the joint distribution to be known. In general the multivariate normal distribution is assumed. However, this assumption can often be seen as excessively restrictive and this lead to uncertainty about the structure or assumption of joint distribution. Smith (2003) [37] suggests applying the copula approach, especially the Archimedean copula to the sample selection model and the result also shows that the copula approach is well suited to apply to a model where the sample selection is biased, using cross-section data. In our work, we employ the copula approach to construct the sample selection model in the case of panel data, resulting in the identification of significant factors affecting economic output. © 2012 Elsevier Inc. All rights reserved. 2018-09-04T09:25:19Z 2018-09-04T09:25:19Z 2013-08-01 Journal 0888613X 2-s2.0-84877840601 10.1016/j.ijar.2013.01.005 https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84877840601&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/52441
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
topic Computer Science
Mathematics
spellingShingle Computer Science
Mathematics
Warattaya Chinnakum
Songsak Sriboonchitta
Pathairat Pastpipatkul
Factors affecting economic output in developed countries: A copula approach to sample selection with panel data
description This work aims at determining the factors affecting economic output in developed countries. However, the definition of development depends on the criteria by which different principles provide different criteria of level of development. Therefore, there exists uncertainty about choice of sample or real development country and if the selected samples are not representative of the underlying population of real developed countries then the ordinary least squares coefficients may be biased. This paper examines the determinants of economic output in the panel data of 22 developed countries from 1996 to 2008 utilizing econometric techniques that take into account the selective nature of the samples. In general, there are two approaches to estimate the sample selection model, namely the maximum likelihood method and the method proposed by Heckman (1979) [21]. Moreover, these two approaches require that the joint distribution to be known. In general the multivariate normal distribution is assumed. However, this assumption can often be seen as excessively restrictive and this lead to uncertainty about the structure or assumption of joint distribution. Smith (2003) [37] suggests applying the copula approach, especially the Archimedean copula to the sample selection model and the result also shows that the copula approach is well suited to apply to a model where the sample selection is biased, using cross-section data. In our work, we employ the copula approach to construct the sample selection model in the case of panel data, resulting in the identification of significant factors affecting economic output. © 2012 Elsevier Inc. All rights reserved.
format Journal
author Warattaya Chinnakum
Songsak Sriboonchitta
Pathairat Pastpipatkul
author_facet Warattaya Chinnakum
Songsak Sriboonchitta
Pathairat Pastpipatkul
author_sort Warattaya Chinnakum
title Factors affecting economic output in developed countries: A copula approach to sample selection with panel data
title_short Factors affecting economic output in developed countries: A copula approach to sample selection with panel data
title_full Factors affecting economic output in developed countries: A copula approach to sample selection with panel data
title_fullStr Factors affecting economic output in developed countries: A copula approach to sample selection with panel data
title_full_unstemmed Factors affecting economic output in developed countries: A copula approach to sample selection with panel data
title_sort factors affecting economic output in developed countries: a copula approach to sample selection with panel data
publishDate 2018
url https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=84877840601&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/52441
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