Heinrich, Tobias - Institut for Miljø og Erhvervsøkonomi, Syddansk … - 2005
Benhabib and Spiegel (1994) argue that regressing cross-country income changes on a catch-up term has the ability to distinguish between the Nelson-Phelps and Neo-classical approach. This paper circumstantiates that these findings constitute a statistical artefact according to Galton's Fallacy.