IDEAS home Printed from https://ideas.repec.org/p/wes/weswpa/2006-004.html
   My bibliography  Save this paper

Cleaning Up the Kitchen Sink: Growth Empirics When the World Is Not Simple

Author

Listed:
  • Francisco Rodríguez

    (Department of Economics, Wesleyan University)

Abstract

This paper explores the relevance of unknown nonlinearities for growth empirics. Recent theoretical contributions and case-study evidence suggest that nonlinearities are pervasive in the growth process. I show that the postwar data provide strong evidence in favor of generalized non-linearities. I provide two alternative mechanisms for making inference about the effects of production-function shifters on growth that do not make a priori assumptions about functional form: monotonicity tests and average derivative estimation. The results of these tests point towards a greater role for structural variables and a smaller role for policy variables than the linear model.

Suggested Citation

  • Francisco Rodríguez, 2006. "Cleaning Up the Kitchen Sink: Growth Empirics When the World Is Not Simple," Wesleyan Economics Working Papers 2006-004, Wesleyan University, Department of Economics, revised 17 May 2007.
  • Handle: RePEc:wes:weswpa:2006-004
    Note: Earlier version "Cleaning Up the Kitchen Sink: On the Consequences of the Linearity Assumption for Cross-Country Growth Empirics" available at http://repec.wesleyan.edu/pdf/frrodriguez/2006004a_rodriguez.pdf
    as

    Download full text from publisher

    File URL: http://repec.wesleyan.edu/pdf/frrodriguez/2006004_rodriguez.pdf
    Download Restriction: no
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ricardo Hausmann, 2008. "The Other Hand: High Bandwidth Development Policy," CID Working Papers 179, Center for International Development at Harvard University.
    2. William F. Maloney & Daniel Lederman, 2008. "In search of the Missing Resource Curse," Economía Journal, The Latin American and Caribbean Economic Association - LACEA, vol. 0(Fall 2008), pages 1-57, August.
    3. Michael Binder & Georgios Georgiadis, 2010. "Determinants of Human Development: Insights from State-Dependent Panel Models," Human Development Research Papers (2009 to present) HDRP-2010-24, Human Development Report Office (HDRO), United Nations Development Programme (UNDP).
    4. Wang, Zhi & Wei, Shang-Jin & Wong, Anna, 2010. "Does a Leapfrogging Growth Strategy Raise Growth Rate? Some International Evidence," Working Papers on Regional Economic Integration 47, Asian Development Bank.
    5. Andrew Sharpe & Alexander Murray, 2011. "State of the Evidence on Health as a Determinant of Productivity," CSLS Research Reports 2011-04, Centre for the Study of Living Standards.
    6. Rafaela PIZARRO-BARCELÓ & Angel GARCIA-ORTIZ, 2010. "Banking and Monetary Transmission Mechanism in Morocco," EcoMod2010 259600135, EcoMod.
    7. Alan Martina, 2007. "A Class of Poverty Traps: A Theory and Empirical Tests," ANU Working Papers in Economics and Econometrics 2007-482, Australian National University, College of Business and Economics, School of Economics.

    More about this item

    Keywords

    Economic Growth; Cross-Country Growth Regressions; Non-linearities; Non-parametric econometrics;
    All these keywords.

    JEL classification:

    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

    NEP fields

    This paper has been announced in the following NEP Reports:

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wes:weswpa:2006-004. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Manolis Kaparakis (email available below). General contact details of provider: https://edirc.repec.org/data/edwesus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.