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Re: st: GDP growth and explanatory variables [was: ATE in stata 7, matching]


From   "Katarina Lynch" <[email protected]>
To   [email protected]
Subject   Re: st: GDP growth and explanatory variables [was: ATE in stata 7, matching]
Date   Wed, 08 Dec 2004 12:01:20 +0000

Stas and Scott,

you dropped very interesting comments!

The hypothesis I am trying to test is whether countries self-select themselves to different equilibrium levels between growth and another explanatory variable, i.e. whether there are some unobservable factors (location, culture, traditions, etc) that select countries to low GDP, low growh etc. The dependent variable is growth and i want to see if the effect of, e.g. government expenditures, on growth is different in sub-samples of poor/low growth, poor/high growth countries.

Quintile regression sounds attractive too. Will read the papers.

Kate

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