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A Random Coefficient Simultaneous Equation System with an Application to Direct Foreign Investment by French Firms

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  • Balestra, Pietro
  • Negassi, Syoum

Abstract

In this paper, a random coefficient simultaneous equation system is used to study Direct Foreign Investment by French firms. The problem of formulating and estimating a random coefficient system is discussed at first in a general setting and an easily implementable solution is proposed. The estimating procedures are then applied to a panel of 64 plants belonging to 17 French firms over the period 1976-82.

Suggested Citation

  • Balestra, Pietro & Negassi, Syoum, 1992. "A Random Coefficient Simultaneous Equation System with an Application to Direct Foreign Investment by French Firms," Empirical Economics, Springer, vol. 17(1), pages 205-220.
    • Handle: RePEc:spr:empeco:v:17:y:1992:i:1:p:205-20
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    Cited by:

    1. Annette Zeilstra & Paul Elhorst, 2006. "Unemployment Rates At the Regional and National Levels of the European Union: An Integrated Analysis," ERSA conference papers ersa06p73, European Regional Science Association.
    2. Troske, Kenneth R. & Voicu, Alexandru, 2010. "Joint estimation of sequential labor force participation and fertility decisions using Markov chain Monte Carlo techniques," Labour Economics, Elsevier, vol. 17(1), pages 150-169, January.
    3. J. Paul Elhorst, 2003. "Specification and Estimation of Spatial Panel Data Models," International Regional Science Review, , vol. 26(3), pages 244-268, July.
    4. Negassi, S., 2004. "R&D co-operation and innovation a microeconometric study on French firms," Research Policy, Elsevier, vol. 33(3), pages 365-384, April.

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