Cheng Hsiao

Professor of Economics

Contact Information
E-mail: chsiao@usc.edu
Phone: (213) 740-2103
Office: KAP 324G

Curriculum Vitae
Faculty Profile on Departmental Website


  • M.S. , Stanford University
  • Ph.D. , Stanford University, 1/1972

  • Description of Research

    Summary Statement of Research Interests
    Professor Cheng researches theoretical and applied econometrics.


    • hsiao, c. (2014). Analysis of Panel Data, third edition, Econometric Society monographs 54. Cambridge university press.
    • Hsiao, C. (2008). Preface to Japanese Translation of Analysis of Panel Data, 2nd ed.
    • Hsiao, C. (2008). Analysis of Panel Data (Japanese translation). Pacific East Economics Publishing House.
    • Hsiao, C. (2007). Preface to Chinese Translation of Econometric Models, Techniques and Applications, 2nd edition. China Social Sciences Publishing House.
    • Hsiao, C. (2003). analysis of panel data, second edition. Cambridege, UK: Cambridege University.
    • Hsiao, C., Intriligator, M., Bodkin, R. (1996). Econometric Models, Techniques and Applications. Beijing: China Social Sciences Publishing House.

    Book Chapter
    • hsiao, c. (2015). random coefficients models in panels. Oxford handbook of panel data econometrics pp. 402-417. oxford university press.
    • hsiao, c. (2015). Challenges for Panel Financial Analysis. Econometrics of Risk pp. 3-15. Springer-Verlarg.
    • hsiao, c. (2014). Panel Macroeconometric models-a selected survey. pp. 205-239.
    • Hsiao, C. (2011). dynamic panel data models. handbook of empirical economics and finance pp. 373-396.
    • Hsiao, C., Pesaran, H. (2008). Random Coefficients Models. pp. 98-108. Norwell, MA: Kluwer Academic Press.
    • Hsiao, C., Dufour, J. (2008). Identification. 2nd edition The New Palgrave: A Dictionary of Economics.
    • Hsiao, C. (2008). Longitudinal Data Analysis. 2nd Edition The New Palgrave: A Dictionary of Economics.
    • Hsiao, C. (2008). Unit Root and Cointegration Regression. 2nd Edition The International Encyclopedia of the Social Sciences.
    • Hsiao, C. (2007). Economic Panel Data Methodology. Elsevier.
    • Hsiao, C. (2006). Mean Variance Portfolio Allocation. (Vol. NA). Encyclopedia of Finance/Kluwer Academic Publications (Kluwer).
    • Hsiao, C. (2006). Cowles Commission STructural Equation Approach in Light of Nonstationary Time Series Analysis. (Vol. 52). lecture notes and monograph: Institute for Mathematical Statistics.

    Journal Article
    • sun, y., hsiao, c., li, q. (2015). volatility spill over effect: a semi-parametric analysis of non-cointegrated processes. econometrics review. Vol. 34, pp. 127-145.
    • liang, Z., lin, z., hsiao, c. (2015). local linear estimation of a nonparametric cointegrated models. econometrics review. Vol. 34, pp. 881-905.
    • Du, Z., Lin, Z., Hua, Y., hsiao, c. (2015). The macroeconomic effects of the Canada-US Free trade Agreement on Canada-a Counterfactual analysis. World Economy. Vol. 38, pp. 878-892.
    • hsiao, c. (2015). Testing purchasing power parity hypothesis-a semi-parametric varying coefficient approach. Empirical Economics. Vol. 48, pp. 427-438.
    • Fujiki, H., hsiao, c. (2015). Disentangling multiple treatment effects-measuring the net economic impact of the 1995 great Hanshin-Awaji earthquake. journal of econometrics. Vol. 186, pp. 66-73.
    • hsiao, c., Zhang, J. (2015). IV, GMM or MLE to estimate dynamic panel data models. journal of econometrcs. Vol. 187, pp. 312-322.
    • hsiao, c., Shen, Y., Bian, W. (2015). Evaluating the effectiveness of China's Financial Reform on the effciency of domestic banking Sector. China Economic Review.
    • Green, C., Long, W., hsiao, c. (2015). testing error serial correlations in fixed effects nonparametric panel data models. Journal of Econometrics. Vol. 188, pp. 466-473.
    • hsiao, c., wan, s. (2014). Is there an optimal forecast combination. jornal of econometrics. Vol. 178, pp. 294-309.
    • gan, l., hsiao, c., xu, S. (2014). model specification test with correlated but not cointegrated variables. Journal of Econometrics. Vol. 178, pp. 80-85.
    • li, K., li, D., liang, z., hsiao, c. (2014). semi-parametric profile likelihood estimation of varying coefficient models with nonstationay regressors. econometrics review.
    • hsiao, c., zhou, q. (2014). statistical inference for panel dynamic simultaneous equations models. Journal of Econometrics.
    • wang, c., hsiao, c. (2013). the real time monitoring test for realized volatility. journal of time series econometrics. Vol. 5, pp. 1-24.
    • wang, c., bauwens, l., hsiao, c. (2013). forecasting long memory processes subject to structural breaks. Journal of Econometrics. Vol. 177, pp. 171-184.
    • Hsiao, C., Ching, H. S., Wan, S. (2012). A panel data approach for program evaluation-measuring the impact of political and economic interation of Hong Kong with Mainland China. Journal of Applied Econometrics.
    • Hsiao, C., Wang, L., chen, s. (2012). measurement errors and censored structural latent variable models. econometric theory. Vol. 28, pp. 696-703.
    • Hsiao, C. (2012). The creative tension between statistics and economics. Singapore Economic Review. Vol. 57
    • hsiao, c., Pesaran, M. H., Pick, A. (2012). diagnostic tests of cross-section independence for nonlinear panel data models. Oxford Bulletin of Economics and Statistics. Vol. 74, pp. 253-277.
    • Ching, H. S., hsiao, c., wan, S. (2012). Impact of CEPA on the labor market of Hong Kong. China Economic Review. Vol. 23, pp. 975-981.
    • bresson, g., Hsiao, C. (2011). a fuctional connectivity approach to model cross-sectional correlations. advances in statistical analysis. Vol. 95, pp. 501-529.
    • bresson, G., Hsiao, C., pirotte, a. (2011). assessing the contribution of R&D to total productivity-a bayesian approach to account for heterogeneity and heterocedasticity. advances in statistical analysis. Vol. 95, pp. 435-452.
    • Wang, L., Hsiao, C. (2011). A Simulation-Based Semi-parametric Estimation of Nonlinear Errors-in-Variables Models. journal of econometrics. Vol. 165, pp. 30-44.
    • Ching, S., Hsiao, C., Wan, S., Wang, T. (2011). Economic Benefits of Globalization-the Impact of entry to WTO on China's Growth. Pacific Economic Review. Vol. 16, pp. 285-301.
    • Sun, Y., Hsiao, C., Li, Q. (2011). Measurement of correlations of noncointegrated I(1) varaibles. jornal of econometrics.
    • campos, n., Hsiao, C., nugent, j. (2011). crises, what crises? new evidence on the relative roles of political and economic crises in begetting reforms. journal of development studies. Vol. 46, pp. 1670-1691.
    • Hsiao, C., pesaran, m. h., picks, a. (2010). diagnostic tests of cross-sectional independence for limited dependent variable panel data models. oxford bulletin of economics and statistics.
    • wang, s., Hsiao, C. (2010). the role of china in Asia monetary integration. Journal of chinese economy. Vol. 43, pp. 23-33.
    • Damronplasit, K., Hsiao, C., Zhao, X. (2010). Decriminalization and Mariajuana Smoking Prevalence: evidence from Australia. Journal of Business and Economic Statistics. Vol. 28, pp. 344-356.
    • Hsiao, C., wan, s. (2010). comparison of forecasting methods with an application to predicting excess equity premium. mathematics and computers in simulations.
    • Liu, E., Hsiao, C., Matsumoto, T., Chou, S. (2009). Maternal Full-Time Employment and Overweight Children: Parametric, Semiparametric and Non-parametric Assessment. Journal of econometrics. Vol. 152, pp. 61-69.
    • Hsiao, C., Damronplasit, K. (2009). Decriminalization Policy and Marijuana Smoking Prevalence: A Look at the Literature. Singapore Economic Review.
    • Hsiao, C., Nugent, J., Shen, Y. (2008). Foreign Direct Investment and the Importance of Institutions. India Macro Manual. pp. 39-58.
    • Fujiki, H., Hsiao, C. (2008). Aggregate and Household Demand for Money: Evidence from Public Opinion Survey on Household Financial Assets and Liabilities. Monetary and Economic Studies. Vol. 26, pp. 159-193.
    • Hsiao, C., Shen, Y., Wang, B., Weeks, G. (2008). Evaluating the Effectiveness of Repeated Job Search Services on the Prime Age Female Welfare Recipients. Journal of Econometrics. Vol. 145, pp. 98-108.
    • Hsiao, C., Tahmiscioglu, A. K. (2008). Estimation of Dynamic Panel Data Models with Both Individual and Time Specific Effects. Journal of Statistical Planning and Inference. Vol. 138, pp. 2698-2721.
    • Hsiao, C. (2007). Panel Data Analysis - Advantages and Challenges. TEST. Vol. 16, pp. 1-22.
    • Hsiao, C. (2007). Rojoinder on: Panel Data Analysis - Advantages and Challenges. TEST. Vol. 16, pp. 56-57.
    • Hsiao, C., Wang, S. (2007). Lag Order Augmented Two- and Three Stage Least Squares Estimators for an Integrated Structural Vector Autoregressive Model. Econometrics Journal. Vol. 10, pp. 49-81.
    • Hsiao, C., Shen, Y., Wang, B., Weeks, G. (2007). Evaluating the Impacts of Washington State Repeated Job Search Services on the Earnings of Prime-Age Female TANF Recipients. Journal of Applied Econometrics. Vol. 22, pp. 453-475.
    • Hsiao, C., Wang, L. (2007). Two-Stage Estimation of Limited Dependent Variable Models with Errors-in-Variables. Econometrics Journal. Vol. 10, pp. 426-438.
    • Hsiao, C., Li, Q., Racine, J. (2007). A Consistent Model Specification Test with Mixed Categorical and Continuous Data. Journal of Econometrics. Vol. 140, pp. 802-826.
    • Hsiao, C. (2007). Some Thoughts on East Asian Economic Growth. Monetary and Economic Studies. Vol. 25, pp. 160-166.
    • Hsiao, C. (2006). Modified Two Stage Least Squares Estimators for the Estimation of a Structural Vector Autoregressive Integrated Process. Journal of Econometrics/Elsevier. Vol. 135, pp. 427-463.
    • Cheng, H., Hsiao, C., Nugent, J. B., Qiu, J. (2006). Managerial Autonomy, Contractual Incentives and Productivity in a Transition Economy: Some Evidence from China's TVEs. Pacific Economic Review/Blackwell. Vol. 11, pp. 341-361.
    • Hsiao, C., Qi, J., Li, Q., Wang, Z. (2006). The Emerging Market Crisis and Stock Market Linkages: Further Evidence. Journal of Applied Econometrics. Vol. 21, pp. 727-744.
    • Hsiao, C. (2005). Efficient Estimation of Dynamic Panel Data Models - with an Application to the Analysis of Foreign Direct Investment. China Economic Journal. Vol. 1, pp. 11-25.
    • Hsiao, C. (2005). Aggregate vs. Disaggregate Data Analysis-A Paradox in the Estimation of Money Demand Function Under Low Interest Rate Policy. Journal of Applied Econometrics. Vol. 20, pp. 579-601.
    • Binder, M., Hsiao, C., Pesaran, M. H. (2005). Estimation and Inference in Short Panel Vector Autoregressions with Unit Roots and Cointegration. Econometric theory. Vol. 21, pp. 795-837.
    • Hsiao, C. (2005). Why Panel Data?. Singapore Economic Review. Vol. 50.2, pp. 1-12.
    • Hsiao, C., wang, S. Y. (2005). Should China Let Her Exchange Rate Float? - the Experience of Developing Countries. Asia Pacific Journal of Accounting and Economics. Vol. 12, pp. 1-17.
    • Hsiao, C., Li, T. (2004). Robust Estimation of Generalized Linear Models with Measurement Errors. Journal of Econometrics/Elsevier. pp. p. 51-65.

    Honors and Awards

    • Fellow (or Equivalent) of National Society in Discipline, Modelling and Simulation Society of Australia and New Zealand, 2009-  
    • Fellow (or Equivalent) of National Society in Discipline, Econometric Society, 12/1/1996-  
    • Fellow (or Equivalent) of National Society in Discipline, Academia Sinica, 1996-  
    • Fellow (or Equivalent) of National Society in Discipline, Journal of Econometrics, 1993-  
    • Journal of Econometrics Special Issue (188 (2)) in honor of Professor Cheng Hsiao: Hetrogeneity in Panel and Time Series Analysis, 2014-2015   
    • International panel data conference in honor of Cheng Hsiao, 2013-2014   
    • ET Interview: Professor Cheng Hsiao, Econometric Theory, 2012-2013   
    • international panel data conference in honor of Cheng Hsiao, 2012-2013   
    • Multa Scripts Award, Econometric Theory, 2012-2013   
    • 2012 International Econometrics Conference in honor of Cheng Hsiao, May 26-27, 2012, Chengdu, China, 2011-2012   
    • The 2011 Dudley Sears Prize, Journal of Development SStudies, 2011-2012   
    • Recipient of National or International Prize in Discipline, Biennial Award, Modelling and Simulation Society of Australia and New Zealand, 2009-2010   
    • Invited session in honor of Cheng Hsiao, the 15th International conference on panel data, Bonn, July, 2009 , 2008-2009   

    Service to the Profession

    Editorships and Editorial Boards
    • International Advisory Board, Singapore Economic Review, 2009-  
    • advisory board, pacific economic review, 2008-  
    • Editor, Journal of Econometrics, 05/01/1991-12/31/2013  

    Professional Offices
    • executive council, journal of econometrics, 2014-  
    • Board of Directors, China Research Institute for LAnd Economics,Taipei, 01/01/1980-