Rehme, Günther (2004):
Why Run a Million Regressions? Endogenous Policy and Cross Country Growth.
In: Darmstadt Discussion Papers in Economics, 140, Darmstadt, [Report]
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Item Type: | Report |
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Title: | Why Run a Million Regressions? Endogenous Policy and Cross Country Growth |
Language: | English |
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. |
Series: | Darmstadt Discussion Papers in Economics |
Series Volume: | 140 |
Place of Publication: | Darmstadt |
Uncontrolled Keywords: | Growth, Public Policy, Cross-Sectional Models |
Classification DDC: | 300 Sozialwissenschaften > 330 Wirtschaft |
Divisions: | 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete > Economic Theory 01 Department of Law and Economics > Volkswirtschaftliche Fachgebiete 01 Department of Law and Economics |
Date Deposited: | 20 Nov 2008 08:17 |
Last Modified: | 09 Jul 2020 01:02 |
URN: | urn:nbn:de:tuda-tuprints-47860 |
Additional Information: | JEL - Classification: O4, C2 |
URI: | https://tuprints.ulb.tu-darmstadt.de/id/eprint/4786 |
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