On the estimation of simultaneous‐equations error‐components models with an application to a model of developing country foreign trade
联立方程误差成分模型估计及其在发展中国家对外贸易中的应用
Abstract An empirical balance of payments model involving the demand and supply of imports and exports for 31 developing countries is estimated utilizing panel data over 1964‐1987. In order to compute error‐components 3SLS estimates of this model, which requires different instruments for different equations, we propose a generalization of the Fuller‐Battese transformation to obtain GMM estimates. Our empirical results suggest that very little of the short‐run adjustment in…