Growth Empirics Without Parameters

30 Pages Posted: 6 Mar 2012

See all articles by Daniel J. Henderson

Daniel J. Henderson

University of Alabama; Institute for the Study of Labor (IZA); Xiamen University - Wang Yanan Institute for Studies in Economics (WISE)

Chris Papageorgiou

International Monetary Fund (IMF) - Research Department

Christopher F. Parmeter

Virginia Polytechnic Institute & State University

Date Written: March 2012

Abstract

Recent research on growth empirics has focused on resolving model and variable uncertainty. The conventional approach has been to assume a linear growth process and then to proceed with investigating the relevant variables that determine cross‐country growth. This article questions the linearity assumption underlying the vast majority of such research and uses recently developed non‐parametric techniques to handle non‐linearities as well as select relevant variables. We show that inclusion of non‐linearities is necessary for determining the empirically relevant variables and uncovering key mechanisms of the growth process.

Suggested Citation

Henderson, Daniel J. and Papageorgiou, Chris and Parmeter, Christopher F., Growth Empirics Without Parameters (March 2012). The Economic Journal, Vol. 122, Issue 559, pp. 125-154, 2012. Available at SSRN: https://ssrn.com/abstract=2016717 or http://dx.doi.org/10.1111/j.1468-0297.2011.02460.x

Daniel J. Henderson (Contact Author)

University of Alabama ( email )

P.O. Box 870244
Tuscaloosa, AL 35487
United States
205-348-8991 (Phone)

HOME PAGE: http://cba.ua.edu/~djhender

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

HOME PAGE: http://www.iza.org/index_html?lang=en&mainframe=http%3A//www.iza.org/en/webcontent/personnel/photos/

Xiamen University - Wang Yanan Institute for Studies in Economics (WISE)

A 307, Economics Building
Xiamen, Fujian 10246
China

Chris Papageorgiou

International Monetary Fund (IMF) - Research Department ( email )

700 19th Street NW
Washington, DC 20431
United States

Christopher F. Parmeter

Virginia Polytechnic Institute & State University ( email )

Blacksburg, VA 24061
United States

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