What to do (and not to do) with time-series cross-section data

Nathaniel Beck, Jonathan N. Katz

Research output: Contribution to journalArticle

Abstract

We examine some issues in the estimation of time-series cross-section models, calling into question the conclusions of many published studies, particularly in the field of comparative political economy. We show that the generalized least squares approach of Parks produces standard errors that lead to extreme overconfidence, often underestimating variability by 50% or more. We also provide an alternative estimator of the standard errors that is correct when the error structures show complications found in this type of model. Monte Carlo analysis shows that these “panel-corrected standard errors” perform well. The utility of our approach is demonstrated via a reanalysis of one “social democratic corporatist” model.

Original languageEnglish (US)
Pages (from-to)634-647
Number of pages14
JournalAmerican Political Science Review
Volume89
Issue number3
DOIs
StatePublished - 1995

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time series
political economy

ASJC Scopus subject areas

  • Sociology and Political Science

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What to do (and not to do) with time-series cross-section data. / Beck, Nathaniel; Katz, Jonathan N.

In: American Political Science Review, Vol. 89, No. 3, 1995, p. 634-647.

Research output: Contribution to journalArticle

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