Socialist Structural Gaps: A Simultaneous Inference Analysis

Stephen G Grubaugh, Andrew J Stollar and G Rodney Thompson

The Review of Economics and Statistics, 1989, vol. 71, issue 4, 693-98

Abstract: This paper reconsiders the statistical evidence for the presence of urbanization and employment "gaps" for socialist economies. Professor Gur Ofer's original work on the existence of such gaps is expanded in three specific ways. First, the data are expanded to include many more countries and time periods. Second, this paper uses a slightly more sophisticated form of Ofer's original model. Third, and most important, this paper presents a more sophisticated statistical analysis of the country gap estimates developed by Ofer. In particular, simultaneous inference tests, t-tests for the individual country gaps, and means replacement technique tests for the presence of a gap in averages are applied. The simultaneous inference test results, which utilize the information on all socialist economies simultaneously, are contrasted with two variants of non-simultaneous tests that have not been applied in this ocntext, but which have been used frequently in other contexts. Copyright 1989 by MIT Press.

Date: 1989
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