Journal ArticleDOI
Growth Regressions and What the Textbooks Don’t Tell You
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In this article, the authors discuss three econometric problems that are rarely given adequate discussion in textbooks: model uncertainty, parameter heterogeneity, and outliers, and show that extreme bounds analysis can be adapted to address all three problems simultaneously.Abstract:
The paper discusses three econometric problems that are rarely given adequate discussion in textbooks: model uncertainty, parameter heterogeneity, and outliers. Leamer’s extreme bounds analysis can be adapted to address all three problems simultaneously. Two examples are presented based on an influential cross-country growth paper by Levine and Renelt (American Economic Review, vol. 82, 1992, pp. 942-63).read more
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Journal ArticleDOI
Model uncertainty in cross‐country growth regressions
TL;DR: In this paper, the authors investigate the issue of model uncertainty in cross-country growth regressions using Bayesian Model Averaging (BMA) and find that the posterior probability is very spread among many models suggesting the superiority of BMA over choosing any single model.
Journal ArticleDOI
Public Capital and Economic Growth: A Critical Survey
Ward E. Romp,Jakob de Haan +1 more
TL;DR: The authors provides an overview of both theoretical and empirical literature on the link between public investment (capital) and economic growth and concludes that although not all studies find a growthenhancing effect of public capital, there is now more consensus than in the past that public capital furthers economic growth.
Journal ArticleDOI
Growth empirics and reality
TL;DR: In this article, the authors argue that much of the modern empirical growth literature is based on assumptions about regressors, residuals, and parameters that are implausible from the perspective of both economic theory and the historical experiences of the countries under study.
Book ChapterDOI
Chapter 8 Growth Econometrics
TL;DR: A survey and synthesis of econometric tools that have been employed to study economic growth can be found in this article, where the main stylized facts that have motivated the development of growth econometrics, the major statistical tools used to provide structural explanations for these facts, and the primary statistical issues that arise in the study of growth data.
Journal ArticleDOI
Greasing the wheels? The impact of regulations and corruption on firm entry
Axel Dreher,Martin Gassebner +1 more
TL;DR: In this article, the authors investigate whether and to what extent the impact of regulations on entrepreneurship is dependent on corruption and show that corruption facilitates firm entry in highly regulated economies. But they do not investigate whether corruption reduces the negative impact on entrepreneurship.