This tutorial should illustrate how to employ bms with panel data. For the purpose of illustration we will use the data put forward in Moral-Benito (2011) and made publicly available at .
The data contains 35 variables (including the dependent variable, the growth rate of per capita GDP) for 73 countries and for the period 1960-2000. The dependent variable, GDP growth, is calculated for five year averages resulting into eight observations per country. Moral-Benito (2011) argues in favor of calculating averages of flow variables, while stock variables have been measured at the first year of each five-yer period.The data can be downloaded here paneldat.rda.