On the explanation of the Lucas Paradox

Mehmet Göktan

Economics Letters, 2015, vol. 137, issue C, 109-113

Abstract: This paper demonstrates that institutional quality provides a full explanation to the Lucas Paradox when country heterogeneity is controlled. Furthermore, in terms of the explanation of the paradox, quantile regression estimates reveal that foreign flows are driven by theoretical explanations at the lower tail, despite that they are significantly affected by growth prospects towards the higher tail.

Keywords: Lucas Paradox; Cross-border capital flows; Institutions; Quantile regression (search for similar items in EconPapers)
JEL-codes: F21 F34 F41 (search for similar items in EconPapers)
Date: 2015
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176515004504
Full text for ScienceDirect subscribers only

Related works:
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:eee:ecolet:v:137:y:2015:i:c:p:109-113

DOI: 10.1016/j.econlet.2015.10.038

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().