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To pool or not to pool: Homogenous versus hetergeneous estimators applied to cigarette demand

Publication Source

Baltagi, B.H., Griffin, J.M., Xiong, W. 2000

Publication Title

The Review of Economics and Statistics

Publication Type

Journal article

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Metadata

Region

The Americas

Economy status

High-income economies

Tags High-income economies, United States, The Americas, Journal article

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Abstract

This paper reexamines the benefits of pooling and, in addition, contrasts the performance of newly proposed heterogeneous estimators. The analysis utilizes a panel data set from 46 American states over the period 1963 to 1992 and a dynamic demand specification for cigarettes. Also, the forecast performance of the various estimators is compared.