Capital accumulation and growth: a new look at the empirical evidence

Abstract

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Does trade openness influence the real effective exchange rate? New evidence from panel time-series

“…As a test of robustness, we also used the augmented mean group (AMG) estimator (Bond and Eberhardt 2009;Eberhardt and Teal 2010), which also takes into account the issue of cross-sectional dependence. In addition, we have also estimated the results of the robust versions of these estimators using the methodology introduced by Bond et al (2010), which simply uses weights for the values of the country regression parameters to diminish the influence of extreme values in the calculation of the average coefficients of the parameters. The estimations were performed with the Stata xtmg routine (Eberhardt 2012).…”

Solow or Lucas? Testing speed of convergence on a panel of OECD countries

“…This is relatively cumbersome in a model in which long-run parameters are restricted to be common across countries while the convergence parameters are not, since it involves estimating a GMM model with additional non-linear restrictions. Conversely, as suggested by Bond, Leblebicioglu and Schiantarelli (2004), it is relatively straightforward to do so in an un-restricted model where both short and long-run parameters are assumed to be heterogeneous (that is a MG specification). Given that our interest lies on the common (or averaged) longrun parameters, we can obtain consistent -albeit relatively inefficient -estimates of their values by taking averages of estimated parameters.…”

“…In recent years, several empirical papers have reconsidered the relationship between the investment rate and output growth and found evidence of a permanent effect of the investment rate on economic growth, thereby rejecting the Solow model (Bernanke and Gürkaynak, 2001, Li, 2002, Bond et al, 2004. However, Bond et al (2004) do not consider human capital in their specifications, and Bernanke and Gürkaynak (2001) assume that all countries are at their steady state -including developing countries -which is difficult to defend. Moreover, while rejecting the augmented Solow model, Bernanke and Gürkaynak (2001) nonetheless find no evidence supporting the Uzawa-Lucas model, except under implausible assumptions about the utility function.…”

Inclusive Institutions, Innovation and Economic Growth: Estimates for European Countries

“…Because institutional quality constrains the accumulation of new technology and impedes the growth of returns to scale, our model belongs to the AK family and the estimation strategy has to account for recent contributions to the estimation of AK models summarised by Bond et al (2010). Following the outline proposed by Bond et al (2010), the simplest way to represent an AK model is as follows:…”