Nathaniel Beck, David Epstein, Simon Jackman & Sharyn O’Halloran

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Alternative Models of Dynamics in Binary Time- Series—Cross-Section Models: The Example of State Failure Nathaniel Beck, David Epstein, Simon Jackman & Sharyn O’Halloran

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Alternative Models of Dynamics in Binary Time-Series—Cross-Section Models: The Example of State Failure. Nathaniel Beck, David Epstein, Simon Jackman & Sharyn O’Halloran. The Problem of State Failure. Question: Why do countries “fail”? - PowerPoint PPT Presentation

Transcript of Nathaniel Beck, David Epstein, Simon Jackman & Sharyn O’Halloran

Page 1: Nathaniel Beck, David Epstein,  Simon Jackman & Sharyn O’Halloran

Alternative Models of Dynamics in Binary Time-Series—Cross-Section Models: The Example of State Failure

Nathaniel Beck, David Epstein, Simon Jackman & Sharyn O’Halloran

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The Problem of State Failure

Question: Why do countries “fail”?Is it a function of political, social or economic conditions?Ultimately, can we predict failure and take steps to prevent it?

CW: The factors which induce failure are not the same ones that alleviate itTheoretical hook: basis of rule of law

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Failure Definition

Sample: 147 countries from 1955-97States can fail in any of 4 ways:

Revolutionary War (50 episodes/359 case-years)

Ethnic War (60 episodes/692 case-years)

Adverse Regime Change (87 episodes/255 case-years)

Genocide/Politicide (36 episodes/265 case-years)

Dependent variable is coded as a 1 if any of these failure modes is present

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Summary Statistics on Failure

Total of 4596 country-years in studyNon-rectangular due mainly to appearance and disappearance of states over time

18.47% of all country-years are failures68 countries (46%) had no failures

4 countries had only failures

IV’s: trade openness, democracy, infant mortality, population density

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1955 1960 1965 1970 1975 1980 1985 1990 1995

Year

Failures

New Failures

Total Failures

New & Total Failures, 1955-97

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1y* = x + Probit: 1(0,1)P(y=1) = Probit(y*)

Probit Analysis

The Standard Case

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1Probit(x´)

Probit Analysis

Impact of Changing

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Probit Analysis

Error Terms for MLE

11*11 01 xPyPyP

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Probit Analysis

Time Series

t = 1 2 3… T

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Probit Analysis – Time Series Cross Section

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Probit Analysis

Restricted Transition Model (LDV)

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Probit Analysis

Restricted Transition Model (LDV)

y* = Probit(x)

y* = Probit(x)

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Probit Analysis

Full Transition Model

y* = Probit(x)

y* = Probit(x)

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Probit Analysis

Lagged Latent Model