This paper studies the effects of financial liberalization and banking crises on growth. It shows that financial liberalization spurs on average economic growth. Banking crises are harmful for growth, but to a lesser extent in countries with open financial systems and good institutions. The...

"The paper proposes a memory saving decomposition of the design matrix to facilitate fixed effects estimation of the three-way error component model with high numbers of observations and groups. A common way to estimate such a model is to include two of the effects as dummy variables and to...