Heuristic Optimization Methods for Dynamic Panel Data Model Selection: Application on the Russian Innovative Performance

COMISEF Working Paper No. WPS-027

34 Pages Posted: 13 Jul 2012

See all articles by Ivan Savin

Ivan Savin

Ural Federal University; Autonomous University of Barcelona

Peter Winker

University of Giessen - Department of Economics

Date Written: 2010

Abstract

Innovations, be they radical new products or technology improvements are widely recognized as a key factor of economic growth. To identify the factors triggering innovative activities is a main concern for economic theory and empirical analysis. As the number of hypotheses is large, the process of model selection becomes a crucial part of the empirical implementation. The problem is complicated by the fact that unobserved heterogeneity and possible endogeneity of regressors have to be taken into account. A new efficient solution to this problem is suggested, applying optimization heuristics, which exploits the inherent discrete nature of the problem. The model selection is based on information criteria and the Sargan test of overidentifying restrictions. The method is applied to Russian regional data within the framework of a log-linear dynamic panel data model. To illustrate the performance of the method, we also report the results of Monte-Carlo simulations.

Keywords: Innovation, Dynamic panel data, GMM, Model selection, Threshold accepting, Genetic algorithms

Suggested Citation

Savin, Ivan and Winker, Peter, Heuristic Optimization Methods for Dynamic Panel Data Model Selection: Application on the Russian Innovative Performance (2010). COMISEF Working Paper No. WPS-027. Available at SSRN: https://ssrn.com/abstract=2104411 or http://dx.doi.org/10.2139/ssrn.2104411

Ivan Savin (Contact Author)

Ural Federal University ( email )

Yekaterinburg
Russia

Autonomous University of Barcelona ( email )

Plaça Cívica
Cerdañola del Valles
Barcelona, Barcelona 08193
Spain

Peter Winker

University of Giessen - Department of Economics ( email )

Licher Str. 62
D-35394 Giessen, DE
Germany

HOME PAGE: http://wiwi.uni-giessen.de/home/oekonometrie/

Here is the Coronavirus
related research on SSRN

Paper statistics

Downloads
47
Abstract Views
398
PlumX Metrics