Applying Growth Theory across Countries

• Tác giả: Robert M Solow
• Ngôn ngữ: eng
• Ký hiệu phân loại: 338.9 Economic development and growth
• Thông tin xuất bản: Washington, DC: World Bank, 2014
• Bộ sưu tập: Tài liệu truy cập mở
• ID: 311263
• Chủ đề: 1. AGGREGATE PRODUCTION FUNCTION; 2. BASIC; 3. BLACK MARKET; 4. BLACK MARKET PREMIUM; 5. BUSINESS CYCLES

Tóm tắt

 The potential problem of reverse causality has been obvious to everyone. It has usually been met with the standard econometric dodge: using lagged values of slow-moving variables as instruments. But this cannot be a serious solution to the problem. The causality issue points to a deeper question: Do cross-country regressions define a meaningful surface along which countries can move back and forth at will? If this is the idea, what mechanism could underlie such a surface? Brock and Durlauf call such a regression a 'model.' Reader suppose in a statistical sense it is. But an economic model should have some internal structure
  its causal arrows should rest on some sort of behavioral mechanism, and that seems to be missing in this literature.