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This paper offers two innovations for empirical growth research. First, the paper discusses principal components augmented regressions to take into account all available information in well-behaved regressions. Second, the paper proposes a frequentist model averaging framework as an alternative...
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perspective of both economic theory and the historical experiences of the countries under study. Many of these problems, it argues … uncertainty consists of two types: theory uncertainty, which relates to which growth determinants should be included in a model … model. The article proposes ways to account for both theory and heterogeneity uncertainty. Finally, using an explicit …
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World Bank economists are mostly practical people, people who try to answer the question, 'what exactly should this particular country do right now?' But if they had hoped that the growth regression lessons summarized in William Brock and Steven Durlauf's article would enhance their practical...
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