Using Panel Data to Evaluate Growth Theories
AbstractThis paper formulates a method for using panel data to compare endogenous growth theories that predict cross-country differences in trend growth rates with exogenous growth models that predict parallel balanced growth paths. Using this method, the paper rejects theories that predict even small differences in trend growth rates for a sample of rich countries and a sample of countries with well-educated populations. Exogenous growth theories may thus characterize the growth experiences of these countries. By contrast, the paper cannot reject theories that predict widely different trend growth rates for a sample of countries with poorly educated populations. Copyright 1998 by Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Research Association.
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Bibliographic InfoArticle provided by Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association in its journal International Economic Review.
Volume (Year): 39 (1998)
Issue (Month): 2 (May)
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Other versions of this item:
- O40 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
- C22 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models &bull Diffusion Processes
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
- C15 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods and Methodology: General - - - Statistical Simulation Methods: General
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