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Threshold effects of inflation on economic growth in developing countries

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  • Bick, Alexander

Abstract

This paper introduces a generalized panel threshold model by allowing for regime intercepts. The empirical application to the relation between inflation and growth confirms that the omitted variable bias of standard panel threshold models can be statistically and economically significant.

Suggested Citation

  • Bick, Alexander, 2010. "Threshold effects of inflation on economic growth in developing countries," Economics Letters, Elsevier, vol. 108(2), pages 126-129, August.
    • Handle: RePEc:eee:ecolet:v:108:y:2010:i:2:p:126-129
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    References listed on IDEAS

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    1. Caner, Mehmet & Hansen, Bruce E., 2004. "Instrumental Variable Estimation Of A Threshold Model," Econometric Theory, Cambridge University Press, vol. 20(5), pages 813-843, October.
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    7. Sala-i-Martin, Xavier, 1997. "I Just Ran Two Million Regressions," American Economic Review, American Economic Association, vol. 87(2), pages 178-183, May.
    8. By Mohsin S. Khan & Abdelhak S. Senhadji, 2001. "Threshold Effects in the Relationship Between Inflation and Growth," IMF Staff Papers, Palgrave Macmillan, vol. 48(1), pages 1-1.
    9. Nazrul Islam, 1995. "Growth Empirics: A Panel Data Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 1127-1170.
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