Testing for Cross country heterogeneity in Growth Models
using a finite mixture approach
Marco Alfo', Giovanni Trovato and Robert J. Waldmann
We use an empirical model to test if the economic growth can be
considered exogenous in the Solovian sense. We apply multivariate
mixture model proposed by Alfo' and Trovato (2004) to the
Bernanke and Gurkaynak (2000) extension of the Solow model. We
find that the explanatory power of the Solow growth model is
enhanced, since growth rates are not statistically significantly
associated with investment rates, when cross-country heterogeneity
is considered. Moreover we find no sign of convergence to a single
equilibrium.
3 comments:
can we get a link or must we settle for an abstract?
also, Gürkaynak NOT Gurkainak. The lack of a ü is understandable, but the mans name has a y not a i in it.
:-)
Thanks for the spelling correction. I still can't manage an umlaut (how did you do it ?).
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