Pande, Rohini; Udry, Christopher - Economic Growth Center, Economics Department - 2005
sometimes it is
placed into a panel data context.
Suppose, however, that the correct model is
yi = fl0 +fl1x1i +fl2x2i +"i (3 …)
where x1 and x2 are 2 difierent institutions that matter. Instead of estimating their separate
efiect, papers in the cross … development, deflned as
xi = fi1x1i +fi2x2i (4)
with the weight fik deflned by a Political Risk Services analyst. The actual …