Growth Regressions and What the Textbooks Don't Tell You
33 Pages Posted: 26 Jul 1999
Date Written: June 4, 1999
In this paper I discuss three econometric problems that are rarely given adequate discussion in textbooks: model uncertainty, parameter heterogeneity, and outliers. I show how Leamer's extreme bounds analysis can be adapted to address all three problems simultaneously, and present two examples based on an influential cross-country growth paper by Levine and Renelt.
JEL Classification: C21, C50, O40
Suggested Citation: Suggested Citation