S-WoPEc
 
Scandinavian Working Papers in Economics
HomeAboutSeriesSubject/JEL codesAdvanced Search
Department of Economics, Norwegian School of Economics (NHH) Discussion Paper Series in Economics, Department of Economics, Norwegian School of Economics (NHH)

No 3/2011:
Robust Growth Determinants.

Gernot Doppelhofer () and Melvyn Weeks ()

Abstract: This paper investigates the robustness of determinants of economic growth in the presence of model uncertainty, parameter heterogeneity and outliers. The robust model averaging approach introduced in the paper uses a flexible and parsi- monious mixture modeling that allows for fat-tailed errors compared to the normal benchmark case. Applying robust model averaging to growth determinants, the paper finds that eight out of eighteen variables found to be significantly related to economic growth by Sala-i-Martin et al. (2004) are sensitive to deviations from benchmark model averaging. For example, the GDP shares of mining or government consumption, are no longer robust or economically significant once deviations from the normal benchmark assumptions are allowed. The paper identifies outlying observations { most notably Botswana { in explaining economic growth in a cross-section of countries.

Keywords: Determinants of Economic Growth; Robust Model Averaging; Heteroscedasticity; Outliers; Mixture models.; (follow links to similar papers)

JEL-Codes: C11; C21; C52; O47; O50; (follow links to similar papers)

40 pages, February 7, 2011

Before downloading any of the electronic versions below you should read our statement on copyright.
Download GhostScript for viewing Postscript files and the Acrobat Reader for viewing and printing pdf files.

Full text versions of the paper:

DWSDownload.aspx?File=%2f ... on+papers%2f2011%2f03.pdf    PDF-file
Download Statistics

Questions (including download problems) about the papers in this series should be directed to Dagny Hanne Kristiansen ()
Report other problems with accessing this service to Sune Karlsson () or Helena Lundin ().

Programing by
Design by Joachim Ekebom

Handle: RePEc:hhs:nhheco:2011_003 This page was generated on 2014-12-14 19:25:06