Rehme, Günther (2008)
Why Run a Million Regressions? Endogenous Policy and Cross Country Growth.
Report, Erstveröffentlichung
Kurzbeschreibung (Abstract)
This paper analyzes the link between growth and public policy when the latter depends on economically important fundamentals. When policy is endogenous the measured effects of policy on growth will generally be biased. Using a widely quoted theoretical model, the signs of the biases are derived. It is shown that the usually reported effects on growth of tax rate variables related to GDP, the ratio of public investment to total investment and the ratio of redistributive transfers to GDP are generally biased downwards. Based on these signed biases the paper discusses some empirical results that seem puzzling from a theoretical viewpoint.
| Typ des Eintrags: | Report |
|---|---|
| Erschienen: | 2008 |
| Autor(en): | Rehme, Günther |
| Art des Eintrags: | Erstveröffentlichung |
| Titel: | Why Run a Million Regressions? Endogenous Policy and Cross Country Growth |
| Sprache: | Englisch |
| Publikationsjahr: | 2008 |
| Ort: | Darmstadt |
| Reihe: | Darmstadt Discussion Papers in Economics |
| Band einer Reihe: | 140 |
| URL / URN: | http://tuprints.ulb.tu-darmstadt.de/4786 |
| Kurzbeschreibung (Abstract): | This paper analyzes the link between growth and public policy when the latter depends on economically important fundamentals. When policy is endogenous the measured effects of policy on growth will generally be biased. Using a widely quoted theoretical model, the signs of the biases are derived. It is shown that the usually reported effects on growth of tax rate variables related to GDP, the ratio of public investment to total investment and the ratio of redistributive transfers to GDP are generally biased downwards. Based on these signed biases the paper discusses some empirical results that seem puzzling from a theoretical viewpoint. |
| Freie Schlagworte: | Growth, Public Policy, Cross-Sectional Models |
| URN: | urn:nbn:de:tuda-tuprints-47860 |
| Zusätzliche Informationen: | JEL - Classification: O4, C2; Erstellt November 2004 |
| Sachgruppe der Dewey Dezimalklassifikatin (DDC): | 300 Sozialwissenschaften > 330 Wirtschaft |
| Fachbereich(e)/-gebiet(e): | 01 Fachbereich Rechts- und Wirtschaftswissenschaften 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete 01 Fachbereich Rechts- und Wirtschaftswissenschaften > Volkswirtschaftliche Fachgebiete > Fachgebiet Wirtschaftstheorie |
| Hinterlegungsdatum: | 31 Jan 2016 20:59 |
| Letzte Änderung: | 25 Okt 2023 08:27 |
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