Year: 2005
Type: report
Abstract: Two important problems exist in cross-country growth studies: outliers and model uncertainty. Employing Sala-i-Martin’s (1997a,b) data set, we first use robust estimation and analyze to what extent outliers influence OLS regressions. We then use both OLS and robust estimation techniques in applying the Extreme Bounds Analysis (EBA) to deal with the problem of model uncertainty. We find that the use of robust estimation affects the list of variables that are significant determinants of economic growth. Also the magnitude of the impact of these variables differs sometimes under the various approaches.
Source: KOPS (University of Konstanz)
Authors: Jan‐Egbert Sturm, Jakob de Haan
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W2111392011