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The authors thank Claude Lavoie (Department of Finance), Julie Turcotte (Department of Finance), John Baldwin (Statistics Canada), Danny Leung (Statistics Canada), and René Morissette (Statistics Canada), as well as the participants in the 2011 Canadian Economics Association conference, the 2011 Australian Conference of Economists, and the 17^th International Panel Data Conference. The authors are grateful to Keith Horner and Jim MacGee (University of Western Ontario) for their detailed comments on an earlier version of this paper. As well, the authors thank SHARCNET for access to computing facilities, without which this research could not have been conducted. This paper was started at the time that Huju Liu was affiliated with the Department of Finance. The views expressed in this publication are the authors’ and do not necessary reflect those of the Department of Finance.