A Monte Carlo study of the BE estimator for growth regressions

Jan Ditzen, Erich Gundlach*

*Corresponding author for this work

Research output: Contribution to journalArticlepeer-review

4 Citations (Scopus)


A recent Monte Carlo study claims that the BE estimator outperforms other panel estimators in terms of average estimation bias in a dynamic specification of the Solow model in levels (Hauk and Wacziarg in J Econ Growth 14(2):103–147, 2009). Our simulation results show that the reported performance of the BE estimator depends on the selected parameterization of the data generating process. Using alternative parameter values, a different model specification, and a restricted cross-section estimator, we find that the BE estimator tends to produce a coefficient of the lagged endogenous variable that is biased toward 1.

Original languageEnglish
Pages (from-to)31–55
Number of pages25
JournalEmpirical Economics
Issue number1
Early online date29 Jul 2015
Publication statusPublished - Aug 2016


  • BE estimator
  • Convergence rate
  • Dynamic panel specification
  • Monte Carlo simulations
  • Solow model

ASJC Scopus subject areas

  • Economics and Econometrics
  • Social Sciences (miscellaneous)
  • Mathematics (miscellaneous)
  • Statistics and Probability


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