National Policies and Economic Growth: A Reappraisal
National economic policies’ effects on growth were over-emphasized in the early literature on endogenous economic growth. Most of the early theoretical models of the new growth literature (and even their new neoclassical counterparts) predicted large policy effects, which was followed by empirical work showing large effects. A reappraisal finds that the alleged association between growth and policies does not explain many stylized facts of the postwar era, depends on the extreme policy observations, that the association is not robust to different estimation methods (pooled vs. fixed effects vs. cross-section), does not show up as expected in event studies of trade openings and inflation stabilizations, and is driven out by institutional variables in levels regressions.
|Date of creation:||May 2003|
|Contact details of provider:|| Postal: 2055 L Street NW, 5th Floor, Washington DC 20036|
Fax: 202.416.0750 |
Web page: http://www.cgdev.org
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:cgd:wpaper:27. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Publications Manager)
If references are entirely missing, you can add them using this form.