Growth Regressions and What the Textbooks Don't Tell You

Temple, Jonathan R.W.

doi:10.2139/ssrn.167332

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Growth Regressions and What the Textbooks Don't Tell You

33 Pages Posted: 26 Jul 1999

See all articles by Jonathan R.W. Temple

Jonathan R.W. Temple

Centre for Economic Policy Research (CEPR)

Date Written: June 4, 1999

Abstract

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

Temple, Jonathan R.W., Growth Regressions and What the Textbooks Don't Tell You (June 4, 1999). Available at SSRN: https://ssrn.com/abstract=167332 or http://dx.doi.org/10.2139/ssrn.167332