Catching Growth Determinants with the Adaptive Lasso

Ulrike Schneider and Martin Wagner

German Economic Review, 2012, vol. 13, issue 1, 71-85

Abstract: This paper uses the adaptive Lasso estimator to determine variables important for economic growth. The adaptive Lasso estimator is a computationally very efficient procedure that simultaneously performs model selection and parameter estimation. The computational cost of this method is negligibly small compared with standard approaches in the growth regressions literature. We apply this method for a regional dataset for the European Union covering the 255 NUTS2 regions in the 27 member states over the period 1995-2005. The results suggest that initial GDP per capita (with an implied convergence speed of about 1.5% per annum), human capital ( proxied by the shares of highly and medium educated in the working age population), structural labor market characteristics (the initial unemployment rate and the initial activity rate of the low educated) as well as being a capital region are important for economic growth.

Keywords: Adaptive Lasso; economic convergence; growth regressions; model selection (search for similar items in EconPapers)
Date: 2012
References: Add references at CitEc
Citations: View citations in EconPapers (18)

Downloads: (external link)
https://doi.org/10.1111/j.1468-0475.2011.00541.x (text/html)
For access to full text, subscription to the journal or payment for the individual article is required.

Related works:
Journal Article: Catching Growth Determinants with the Adaptive Lasso (2012)
Working Paper: Catching Growth Determinants with the Adaptive Lasso (2009)
Working Paper: Catching Growth Determinants with the Adaptive LASSO (2008)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bpj:germec:v:13:y:2012:i:1:p:71-85

Ordering information: This journal article can be ordered from
https://www.degruyter.com/journal/key/ger/html

DOI: 10.1111/j.1468-0475.2011.00541.x

Access Statistics for this article

German Economic Review is currently edited by Peter Egger, Almut Balleer, Jesus Crespo-Cuaresma, Mario Larch, Aderonke Osikominu and Georg Wamser

More articles in German Economic Review from De Gruyter
Bibliographic data for series maintained by Peter Golla ().