Some million thresholds: Nonlinearity and cross-country growth regressions
AbstractThis paper examines the robustness of the determinants of economic growth in cross-country regressions allowing for nonlinearity in the specification of the data generating process. The nonlinearity is modelled as regime-dependent parameter heterogeneity, where the regime is determined by the level of the explanatory variable whose robustness we aim to measure. Using a generalization of the procedure in Sala-i-Martin (American Economic Review, 1998´7), strong evidence of nonlinearity is found for practically all of the variables that are robustly correlated to growth in the linear setting, including those variables which are usually included in most cross-county growth regressions.
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Bibliographic InfoPaper provided by University of Vienna, Department of Economics in its series Vienna Economics Papers with number 0210.
Date of creation: Oct 2002
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- Cuaresma, Jesus Crespo, 2003. "Some million thresholds: Nonlinearity and cross-country growth regressions," Royal Economic Society Annual Conference 2003 51, Royal Economic Society.
- C52 - Mathematical and Quantitative Methods - - Econometric Modeling - - - Model Evaluation, Validation, and Selection
- O50 - Economic Development, Technological Change, and Growth - - Economywide Country Studies - - - General
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- Crespo Cuaresma, Jesus & Doppelhofer, Gernot, 2007.
"Nonlinearities in cross-country growth regressions: A Bayesian Averaging of Thresholds (BAT) approach,"
Journal of Macroeconomics,
Elsevier, vol. 29(3), pages 541-554, September.
- Jesus Crespo Cuaresma & Gernot Doppelhofer, 2006. "Nonlinearities in Cross-Country Growth Regressions: A Bayesian Averaging of Thresholds (BAT) Approach," Vienna Economics Papers 0608, University of Vienna, Department of Economics.
- Doppelhofer, G. & Cuaresma, J.C., 2007. "Nonlinearities in Cross-Country Growth Regressions: A Bayesian Averaging of Thresholds (BAT) Approach," Cambridge Working Papers in Economics 0706, Faculty of Economics, University of Cambridge.
- Jesús Crespo Cuaresma & Maria Antoinette Silgoner, 2004. "Groth effects of inflation in Europe: How low is too low, how high is too high?," Vienna Economics Papers 0411, University of Vienna, Department of Economics.
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