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A Critical Note on Growth Regressions

Tobias Heinrich

DEGIT Conference Papers from DEGIT, Dynamics, Economic Growth, and International Trade

Abstract: Benhabib and Spiegel (1994) argue that regressing cross-country income changes on a catch-up term has the ability to distinguish between the Nelson-Phelps and Neo-classical approach. This paper circumstantiates that these findings constitute a statistical artefact according to Galton's Fallacy.

Keywords: Cross-country growth; technological catch-up; Galton's Fallacy; regression to the mean (search for similar items in EconPapers)
JEL-codes: C10 C22 O40 (search for similar items in EconPapers)
Pages: 5 pages
Date: 2005-06
New Economics Papers: this item is included in nep-dev and nep-ecm
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