Schularick, Moritz (contributor); … - 2006
errors, takes the following form:
'
iii
yIFIα β ε∆=+ + +γ X ,
(1)
where
i
y∆ , the dependent variable, is the …
X a vector
of control variables,
i
ε represents an i.i.d. stochastic term, and subscript i indicates the
countries … regression:
,,1 ,1 , , ,
(1)
it it it it it i it
yy y IFIα β ηε
−−
−=− + + ++γ'X ,
(2)
where
,it
y is the logarithm of …