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Growth Regressions and What the Textbooks Don’t Tell You
Author(s) -
Temple Jonathan
Publication year - 2000
Publication title -
bulletin of economic research
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.227
H-Index - 29
eISSN - 1467-8586
pISSN - 0307-3378
DOI - 10.1111/1467-8586.00103
Subject(s) - outlier , econometrics , economics , econometric model , mathematical economics , mathematics , statistics
The paper discusses three econometric problems that are rarely given adequate discussion in textbooks: model uncertainty, parameter heterogeneity, and outliers. Leamer’s extreme bounds analysis can be adapted to address all three problems simultaneously. Two examples are presented based on an influential cross‐country growth paper by Levine and Renelt ( American Economic Review , vol. 82, 1992, pp. 942‐63).