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- Economic regions are defined as in Crone (2004). Crone’s economic regions differ from the BEA definitions by moving West Virginia into the Great Lakes region and Louisiana into the “Energy Belt†region, both from the BEA’s Southeast region. Minnesota is added to the Great Lakes region from the BEA’s Plains region. South Dakota and North Dakota are moved to a new Mountain/Northern Plains region from the BEA’s Plains region. Wyoming. Utah, and Colorado are moved to the “Energy Belt†region from BEA’s Rocky Mountain States region. Finally, Arizona is moved to the Far West region from the BEA’s Southwest region. The BEA’s Southwest region is now omitted. TABLE 2: State Own Deficits and State Rate of Job Growth†( : Mean = .018 ; S.D. = .024)N N (OLS) (1) N (GMM) (2) N (GMM) (3) N (GMM) (4) N (GMM) (5) N (GMM) (6) OwnD(-1) (Mean = 276; S.D. = 500) -.000002 (.0000008)* .00004 (.00002)** .00004 (.00002)** .00003 (.00001)** .000005 (.000002)** -
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- GovServices(-1) (Mean = 2001; S.D. = 742) - - - - - -.000007 (.000009) -IOSpillovers (Mean = .0017; S.D. = .003) - - -2.004 (.937)** - - - -REGSpillovers (Mean = .0041; S.D. = .0067) .345 (.050)** - - .272 (.104)** .231 (.122)* .258 (.092)** .415 (.074)** Year Fixed YES YES YES YES NO YES YES IV F-Test for OwnD(-1) - 9.05 9.05 9.05 9.05 - 7.02 IV F-Test for OwnNetRev(-1) - - - - - 16.83 -IV F-Test for GovServices(-1) - - - - - 188.89 -Arellano-Bond Test: AR(2) - .240 .206 .348 .703 .995 .936 Hansen Exclusion Test - .366 .624 .518 .376 .510 .404 Difference-in-Hansen Test - .366 .458 .371 .282 .510 .280 â€
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Windmeijer, F., 2005. “A Finite Sample Correction for the Variance of Linear Efficient Two-step GMM Estimators,†Journal of Econometrics, 126, 25-51. TABLE 1: Economic Regions[ ECONOMIC REGIONS MEMBER STATES New England Maine, New Hampshire, Vermont, Massachusetts, Rhode Island, Connecticut Mideast New York, New Jersey, Pennsylvania, Delaware, Maryland Southeast Virginia, North Carolina, South Carolina, Georgia, Florida, Kentucky, Tennessee, Alabama, Mississippi, Arkansas Great Lakes West Virginia, Michigan, Ohio, Indiana, Illinois, Wisconsin, Minnesota Plains Missouri, Kansas, Nebraska, Iowa Mountain/Northern Plains South Dakota, North Dakota, Montana, Idaho Energy Belt Louisiana, Wyoming, Utah, Colorado, Texas, Oklahoma, New Mexico Far West Arizona, California, Nevada, Oregon, Washington [
- ZAID(-1) (Mean = 476; S.D. = 253) .000006 (.000002)** -.00006 (.00004) -.00005 (.00004) -.00004 (.00002)* .00002 (.00005) -.00006 (.00003)* OwnNetRev(-1) (Mean = 2537; S.D. = 915) - - - - - -.00004 (.00002)** GovServices(-1) (Mean = 2001; S.D. = 742) - - - - - .00003 (.00003) IOSpillovers (Mean = .0067; S.D. = .014) - - .093 (.078) - - -REGSpillovers (Mean = .017; S.D. = .023) .634 (.033)** - - .685 (.091)** .887 (.050)** .676 (.609) Year Fixed YES YES YES YES NO YES IV F-Test for OwnD(-1) - 10.06 10.06 10.06 10.06 -IV F-Test for OwnNetRev(-1) - - - - - 13.58 IV F-Test for GovServices(-1) - - - - - 164.29 Arellano-Bond Test: AR(2) - .479 .389 .329 .312 .359 Hansen Exclusion Test - .732 .651 .785 .733 .515 Difference-in-Hansen Test - .765 .714 .745 .635 .515 â€
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